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: KAD who wrote (9562)	11/25/1997 11:35:00 AM
From: Bill Fischofer	Read Replies (1) \| Respond to of 97611

Re: DEC DEC has been selling themselves in stages. First the semiconductor operations to INTC, now the networking business to CS. CPQ might be interested in some of their service operations, but I suspect the self-salamiing will have to continue for a while longer. Pfeiffer says that CPQ has "eliminated" the direct vendors' (read: DELL) pricing advantage and I believe him. It was interesting to see Michael Dell on CNBC this morning. When asked about sub-$1k PCs he waffled, claiming that they are stripped down systems which by the time you add back in things are in the $1,300-$1,600 range "which is where we compete". I'd advise Mr. Dell to wander into his local Best Buy and see what CPQ is offering at a legitimate sub-$1k price. CPQ has "boxed" DELL, outselling them at both the low end and the high end. However, right now CPQ is more focussed on applying the margin vise to SUNW than DELL as it muscles its way into the enterprise computing mainstream, so you can expect both CPQ and DELL to flourish as they take market share from the weaker players as well as destroying UNIX workstation/server margins. Looking forward, CPQ remains a core holding. They are on track to push aside first SUNW and then IBM as the enterprise computing leader. This won't happen overnight. Expect SUNW to fall by 2000 and IBM by 2005.