Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: werefrog who wrote (9073)	11/17/1997 3:59:00 PM
From: William Hunt	Respond to of 97611

TO ALL-----Dow Jones Newswires -- November 17, 1997 Compaq CEO Sees Co. Revenue At $24-$25B In '97 By Mark Boslet And Anthony Palazzo LAS VEGAS (Dow Jones)--In the past 18 months, the top four personal computer vendors have gained 10% in market share, and the trend is accelerating, Compaq Chief Executive Eckhard Pfeiffer said. In five years, the top four vendors will hold more than 70% of the worldwide PC market share, Pfeiffer said in a keynote address at the Comdex computer trade show here. Meanwhile, the personal computer will continue climbing the ladder to more complex and demanding jobs within the corporate world, Pfeiffer said, as he laid out a host of predictions. People have predicted the PC would replace "big iron" mainframes for many years, but "that day is finally near," Pfeiffer said. The PC is poised to "totally replace the remaining legacy systems," he said. Pfeiffer went on to say Compaq is on its way to generating $24 billion to $25 billion in revenue this year, and he expects the company to be among the top four vendors who are aggregating market share. In 1995-1996, Compaq was the fifth-largest PC vendor in the world, according to Pfeiffer. He also said Compaq has "literally destroyed the direct marketer's advantage" with changes in its distribution strategy. Vendors hoping to win in this atmosphere of change and consolidation will respond to the fact that custom-tailored services are becoming a dominant consideration in customers' purchase decisions, Compaq Chief Executive Pfeiffer said. He said vendors will need to satisfy the entire range of customers' desires. For that reason, Pfeiffer predicted that 75% of computers will continue to be sold through distributors and other indirect sales channels. Large-scale partnerships will play a key role, he said. In a question-and-answer session, Pfeiffer asserted that Compaq's strong ties to Intel Corp. (INTC) aren't in danger. "Clearly we feel we're on the inside" with both Intel and Microsoft Corp. (MSFT), he said. Analysts have wondered whether Hewlett-Packard Co. (HWP) was muscling its way into a favored role with these two industry powerhouses, in part because of its work on the Merced chip with Intel. At the same time, Pfeiffer said, leading computer vendors will need to go beyond just leveraging Microsoft and Intel products and will need to provide more cost-effective offerings. He highlighted two Compaq initiatives - SmartStart and Insight Manager - which simplify computer setup and management into a series of yes-no questions that can be answered by executives, not just highly trained technicians. Along with increasing use by large corporate customers, PCs will see "explosive growth in the small-business sector," Pfeiffer predicted. In addition, he said, PC technology "will extend into more and more parts of life - our business and our private life." He mentioned automobiles, smart appliances and the "networked home" as areas into which PC technology will expand. "I think the clear next step is to add entertainment to the list," he added. However, the PC industry must acknowledge and surmount certain obstacles if it is to continue its pace of growth. Greater ease-of-use and higher bandwidth are two of those requirements, but "solutions to these problems are just around the corner," he said. In the question-and-answer session, Pfeiffer reiterated Compaq's target of expanding its revenue to $50 billion within the next three years. This expansion would represent 26% to 27% annual growth, a pace just slightly lower than the 30% growth Compaq has shown over the past five years. - By Mark Boslet (415) 496-1366 and Anthony Palazzo (626) 798-7628 BEST WISHES BILL

To: werefrog who wrote (9073)	11/17/1997 4:00:00 PM
From: Pruguy	Read Replies (2) \| Respond to of 97611

can anyone provide me with a link to Pfeiffer's comments at comdex or print them here for us?