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Technology Stocks : Hewlett-Packard (HPQ) -- Ignore unavailable to you. Want to Upgrade?

To: Dave B who wrote (326)	5/10/2002 2:02:55 PM
From: MeDroogies	Read Replies (2) \| Respond to of 4345

My point is, Wal Mart has the clout...but I doubt they acted alone. The recording industry has been going through some tough times lately, with MP3's and peer to peer being their primary problems. They don't need (and Wal Mart doesn't want) additional lost sales due to family advocate pressure. I don't see a comparison between this and PCs, because the recording industry has large political and economic problems they are dealing with. PCs have economic issues, but they aren't as severe. Peer to peer isn't driving PC prices down to zero. There is a floor (somewhere) for PC prices. Don't take this to mean that I don't believe that Wal Mart will threaten HPQ with certain types of retaliatory action (white boxes, only stocking certain HPQ brands, etc). I DO believe they will take that kind of step because that is how Wal Mart gets their margins. On the other hand, HPQ has the opportunity to withold from Wal Mart the opportunity to sell one (two?) of the best known brand names in the US. Wal Mart isn't stupid. White box sales won't amount to much comparatively speaking, and it would kill their accessories division (where they make more money anyway). It will be an interesting negotiation, but one that I'm quite sure both firms are equally matched in. I don't see Wal Mart having an upper hand. That doesn't mean HPQ does, either.