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Technology Stocks : Compaq -- Ignore unavailable to you. Want to Upgrade?

To: Elwood P. Dowd who wrote (92011)	7/3/2001 10:32:19 AM
From: PCSS	Respond to of 97611

The tide may just have begun turning .. we're patient, aren't we?

To: Elwood P. Dowd who wrote (92011)	7/3/2001 10:36:24 AM
From: profile_14	Read Replies (2) \| Respond to of 97611

Compaq Moving Opers Overseas, Dell Inquiring About AMD Jul 2, 2001 (NewsFactor.com via COMTEX) -- Compaq Computer (NYSE: CPQ) will move production of its desktop computers from California to Taiwan, sources there report. The company is allowing its contract with MiTAC Industrial Corp. to lapse in favor of Taiwan's First International Computer and Foxconn . Foxconn already makes bare-bones desktop computers for Compaq. MiTAC will continue making Compaq's notebook computers and systems destined for the server market, according to reports. Compaq's Hardware Shift The news comes a week after Compaq shifted its focus from making personal computers to delivering packaged business services and software. Compaq also has begun phasing out its line of Alpha microprocessors in favor of Intel's Itanium. Compaq's move came as it recently lost its ranking as No. 1 PC maker to Dell Computer Corp (Nasdaq: DELL). Forrester Research analyst Jed Kolko told NewsFactor Network that PC makers such as Dell and Gateway are encountering consumers who are "less interested in buying PCs" than in previous years. Dell is now asking customers whether they would like a computer based on microchips from AMD (NYSE: AMD). The company had been the only North American computer maker using solely Intel processors. Compaq Computer, Gateway (NYSE: GTW), Hewlett-Packard (NYSE: HWP) and IBM (NYSE: IBM) all use both AMD and Intel chips in their computers. Dell Surveys Customers A survey of Dell customers asks whether they would pick a computer priced at $1,049 that came equipped with AMD's 1 GHz Athlon processor or a desktop computer using Intel's 1 GHz Pentium 3 priced at $1,099. Although a Dell spokesperson called the question part of market research to help determine future demand, analysts see the move as an indication the company is considering moving to the less expensive AMD processor, sources say. The survey also asked customers about AMD's Athlon and Duron processors, and Intel's Celeron, Pentium 3 and Pentium 4 chips. Dell, which has said it is shooting for 40 percent of the global PC market, is following other computer makers in seeking ways to hold down costs in order to survive the current downturn in PC sales. Motherboard Demand Falls In another sign of the continuing slump in PC sales, Taiwanese chipset maker VIA reports sales are down significantly from a year ago. VIA is the world's largest maker of chipsets, a vital component of PC motherboards. A drop in chipset sales is seen as an indication of lower demand for PCs, reports say. The relative lack of interest in traditional PCs was evident at this year's PC Expo in New York City. As PC sales growth showed its first decline in 16 years, the annual convention highlighted fast laptops, thinner computer monitors and DVD and CD ROM-burners -- with few desktop computers in sight. Technology companies this week are taking a lesson from more traditional industries, such as automakers, by asking employees to take vacation time. Both Dell and Compaq join several other high-tech firms in shuttering their offices during the holiday week in further cost-cutting measures. Dell is asking employees to take five days off. Hewlett-Packard is asking its employees to either take eight vacation days by October 31st or accept a 10 percent pay cut. Other companies requesting that employees take the week off include Sun Microsystems (Nasdaq: SUNW), Applied Materials (Nasdaq: AMAT) and Adobe Systems (Nasdaq: ADBE). By Ed Sutherland URL: mitac.com foxconn.com forrester.com Copyright (C) 2001, NewsFactor Network. All rights reserved -0-