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

To: William Hunt who wrote (8518)	11/4/1997 9:19:00 AM
From: Jack T. Pearson	Read Replies (3) \| Respond to of 97611

NY Times article says big 4 PC makers (CPQ, IBM, DELL, HPW) are increasing domination of the PC market and will double market share (24% --> 50%) by 2001. Also says that remaining PC makers cannot compete in corporate market because they lack the expertise and that corporations want to build long term relationships with a PC maker. nytimes.com

To: William Hunt who wrote (8518)	11/4/1997 7:30:00 PM
From: Kai-Uwe	Respond to of 97611

Excellent article! Will be a challenge to see how this affects the outcome of the 'price war' already ongoing! Take care K.

To: William Hunt who wrote (8518)	11/4/1997 10:39:00 PM
From: hpeace	Read Replies (1) \| Respond to of 97611

william, there are several things wrong with the article you posted. Both dell and cpq hold memory about the same time. It's not 11.2 days for dell or 30 days for cpq. Let me explain how the module business works from cpq side. It's almost like this on dell side except that it isn't elctronic(it's a little slower). Dell has plans to make it elctronic soon. Invntory on module will drop to a particular point and the prodcution schedule dictates a need. Cpq sends a edi message to a module builder. The module mfg'er will ship the modules out that day. There isn't a bunch of mrp gobble-de-gook and po's and stuff. They send a edi and expect shipment immediately. The modules come in and are gone...just like that. cpq may even send edi to drop ship so the inventory is in and out. Don't think that the article really knows what happening. Also, on this statement "For a standard 32 MEG configuration, Dell spent approximately $16 less this quarter than it did last quarter. " Have no idea how they are coming up with this number....?????????? You need to know dells contracts for this and you couldn't post this if you do...the dell's and the cpq's are not where you can look in you news paper and track what drops. As for intel low cost prices getting to cyrx...I don't think so... Cpq's mat'l cost are allot lower than dells..that's why they sell a sub 800 and sub 1000 pc and even make money on it. Dealer's make 10-14% on them..I bet cpq makes the same.. That's why they ended up dominating the market last qtr.. and dell's gross mergins are 22+ % and cpq's are 27.4%. The post was well thought it...but, what it lacks is how the both dell and cpq really operate. right fomr the modules.... ant's no massive days of inventory on those ..they are in and out. I'll send you an email, to authenicate this post.