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

To: Elwood P. Dowd who wrote (19090)	3/3/1998 8:02:00 PM
From: robbie	Read Replies (2) \| Respond to of 97611

Stephen, a price war and fierce competition are two entirely different things. In a price war, the participants will go so far as to sell their product at or below cost to increase market share. That is not the case here. Compaq's margins are INCREASING. As for stiff competition, I never expected anything but. We're talking about doing battle with the likes of HWP, IBM, SUNW, DELL. I knew these companies would get into sub-1k systems. Where Compaq is making big gains is in the high-end systems, and this trend will continue. You had the best advice earlier today. We should turn off our computers and go fishing by day and pubbing by night. Don't forget we're on the same side. Robbie P.S. Still bet ya a sixer of your favorite we are 50 by 7/31/98.

To: Elwood P. Dowd who wrote (19090)	3/3/1998 8:04:00 PM
From: Dulane U. Ponder	Respond to of 97611

Stephen, I agree with you that we are in the midst of a price war which may now have spread to the enterprise arena. In a way, it was inevitable with the introduction of the sub 1K computer. Did anyone believe that competitors would sit back and allow themselves to be priced out of the market. If there is any logic in the marketplace, then a price war is a logical inevitability in the present circumstances. Price wars have historically been waged during periods of deflationary dowturn in industries as diverse as oil and soda. dulane

To: Elwood P. Dowd who wrote (19090)	3/3/1998 8:07:00 PM
From: Roads End	Read Replies (1) \| Respond to of 97611

stephen...Whether it is a war or not, price competition is were it is at. If you go out and price computers at the consumer level I have found they are all priced damn near the same when configured simularly and I would expect commercial machines would be the same with respect to price. The issue then at this level is not really who will low ball who, but who can differentiate their product. The whole point of the DEC merger is to provide the differentiation with a broad array of products and related service. A few days advantage in inventory turnover is not going to be what will determine success in this market.