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Technology Stocks : Dell Technologies Inc. -- Ignore unavailable to you. Want to Upgrade?

To: jim kelley who wrote (23501)	11/28/1997 8:27:00 PM
From: Meathead	Read Replies (3) \| Respond to of 176387

15% for compaq on it's higher priced deskotps is a little hard to believe. That would be poor indeed.. I think Dell's Optiplex line which accounts for 60% of revenue has 20% - 22% margin... very close to their overall GM. If Compaq's pricing is almost dollar for dollar equivelant to Dell for similar configurations, I would expect Compaq to have slightly higher margins due to their ability to procure parts cheaper and their SMT capabilities. Compaq has been able to reduce the amount of product in the reseller channel to further offset some of the margin pressure they endure due to Dell's ability to instantly drop prices. I can't find really good numbers on Compaq like a breakdown of system percentage (desktop, server, portable) they sell into the different channels. Anybody? MEATHEAD

To: jim kelley who wrote (23501)	11/29/1997 12:56:00 AM
From: hpeace	Read Replies (1) \| Respond to of 176387

jimbo, I think the fin. analsyt report last month on cpq's low cost pc's was misleading. The monitor bais the report. i think compaq makes good cash, but it's maybe 1/2 the 27.4% gross margin on the 799 pc. In fact on any model that cpq sells I have the paid research that would indicate the Gross margin. Money can buy any research numbers.