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To: Mohan Marette who wrote (24861)	12/11/1997 9:36:00 PM
From: jim kelley	Read Replies (1) \| Respond to of 176387

Mohan, I went to CompUSA and a Computer City this afternoon to see first hand whats going on in the retail outlets. CompUSA and Computer City both have twice as much stock for CPQ on hand as they do for Packard Bell. HWP products are on display at both places there is less PC stock for HWP than Packard Bell. Both stores are carrying their own noname computers that happen to actually be made by INTEL for them. I also found out that INTEL makes the Sony VAIO computer for Sony. I was suprised to say the least. Computer city was running a cash back store promotion to move the computers out. I asked the salesman what he was going to do if they did not sell them all. He said that he understood that they were on consignment. He also said that they got their PC's from Ingram micro systems. He also said that the $999 CPQ model was selling a lot better than the 799 model. The HP systems were doing well and were featured at several booths. The salesman thought they might have stock leftover for CPQ in the 1000 to 2000 price range. Their new high end P-II DVD equipped model was selling well. He said they made very little on the PC's and had to make their profit from the accessories and software that is added. COMPUSA had a fairly large display of laptops most of which were CPQ along with some noname laptops. People there did not seem to like the touch pads or displays on the CPQ laptops. The desktops at CPU had an equal number of Packard Bell and CPQ displays. HWP had a few less displays. CPQ had twice as much stock on hand. Computer City was giving $200 off on purchases of 2400 or more. I think they are worried. They do not want to get stuck with the inventory.