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To: Chuzzlewit who wrote (23611)11/30/1997 2:59:00 PM
From: jim kelley  Read Replies (1) | Respond to of 176387
 
Paul,

Thanks for the analysis. I think the other unknowns are the costs of distributing and servicing these subzeros. I suspect these other costs may eat up most of the profits.

I think that these products are strategic retail products to capture unit marketshare. The retail stores are characterizing them (privately) as throwaway PC's with a life expectancy of 18-24 months. CPQ has been losing marketshare in this segment rapidly to HWP and Packard Bell. The retail stores are also carrying their own local no-name computers. Since there is little to no brand loyalty this strategy must be logically aimed at forcing the weaker hands out of the business.

Regards,

Jim Kelley



To: Chuzzlewit who wrote (23611)11/30/1997 3:29:00 PM
From: hpeace  Read Replies (1) | Respond to of 176387
 
paul, cpq's presario pII300 loaded with AGP is $2499
and the margin is probably one of their best.
the loaded pII266 also loaded with the cd AGP is $2199.
actually like I said..I would fax you something with an email.
it's the kind of breakdown I'm talking about.
p200mmx is 1199 that is loaded
p233 is loaded and it's 1499...this baby is sub 1000 soon.

for "home" the rest of the world is buying sub1k and that is the 90% norm.


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