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

To: Analog Kid who wrote (16282)	2/3/1998 4:47:00 PM
From: John Biddle	Read Replies (1) \| Respond to of 97611

I agree that Compaq is much more efficient at manufacturing PCs than DEC. I just saw this as an opportunity for Compaq to be able to make and sell two lines of very similar PCs, one under the DEC name and one under the Compaq name. The Compaqs would continue to be sold via the channel, thereby keeping the channel happy and preventing a revolt. Meanwhile, the DECs could be sold direct, over the web and phone. That way customers who wanted to by direct could buy DECs and those who preferred to used the channel could buy Compaqs. Also, Compaq the parent company gets the profits from both and gets to sell many PCs via the much more efficient and profitable direct route. I would still change the way the factories were run to take advantage of CPQ's experience and expertise. I'm thinking that the ability to sell two brands via two different methodologies would be worth the extra effort required, and the profit margin of the DEC factories would go up as they moved to the CPQ way of doing things.