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

To: Meathead who wrote (9807)	11/28/1997 11:10:00 PM
From: hpeace	Read Replies (2) \| Respond to of 97611

meathead, soon dell will have a low cost pc... The biggiest barrier now is the cost Dell loses becasue they have to buy SMT capacity which is scarce. You don't agree since you have never purchased any of the real cost research. The kind you don't get free, but cpq still buys parts cheaper. Since Dell had the lowest cost distribution system it hasn't mattered all that much...yes, the same research sources that say cpq is lowest cost manufacturer say that Dell has lowest cost distribution/sales model... They are entirely dif. It is crazy the prices you have to pay becasue SMT manufacturers cannot get their act together. There is no SMT manufacturer that has class A systems. Selectron is striving but miles away. They are making allot of money becasue they are charging allot of money for SMT...it's not becasue they are great at planning or material logistics and manufacturing expertise. Now, that Cpq and HP and IBM are changing their distribution model then Dell loses some advantage. So, you will see Dell start to create a channel of teir 1 dealers to satisfy the huge corporations. Many corps like to hand the whole thing off. They don't even like picking up the phone and ordering or ordering through net. Dell will figure out ways to lower cost so HP and Cpq and Ibm don't undercut them, Dell will implement world-wide system including OBI edi...not ansi x.12 EDI. And last, you'll have to eat your words becasue Dell will have a $500 home pc.