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: hpeace who wrote (10454)	12/9/1997 12:32:00 AM
From: ed	Read Replies (2) \| Respond to of 97611

People on this thread and the street concentrated too much on the sub $1000 pcs. Pls do not forget, besides sub $1000 pcs , CPQ had all lines of products available to fit the needs of different customers. sub $1000 is the growth areas for the future and it is counted as additional business for CPQ, with sub $1000 , a big market will be opened for CPQ, like the video conference equipments on pc, ...etc. In the future , we do not have tv sets at home but LCD displays for BOB, Johns, ..... which are controlled by a PC server. The LCD displays will be used as part of video conference tools, video phones...etc, what I mean here is that sub $1000 pcs only open up additional market for CPQ, with every family has pcs, lots of additional hardwares can be sold to the regular family.Besides the sub$1000 pc market, CPQ is also involved heavily in the middle and high end PC business, engineering workstations, servers ...etc. Now, the street only know that CPQ keep reducing the price of sub $1000 pcs, but it did not look at other end of the equation, i.e the components cost was reduced significantly, with BTO program implemented, less inventory , which means less cost, more profit, with faster turn around, means more profit for CPQ. The street is currently worry about the profit margin of cpq, but it did not look at the cost.