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Technology Stocks : Dell Technologies Inc. -- Ignore unavailable to you. Want to Upgrade?

To: yard_man who wrote (32730)	3/6/1998 5:27:00 PM
From: DRL	Respond to of 176387

CPQ $25 per CNBC

To: yard_man who wrote (32730)	3/6/1998 5:31:00 PM
From: Boplicity	Read Replies (3) \| Respond to of 176387

Barry, We are not hearing it from DELL quit the opposite in fact. Greg

To: yard_man who wrote (32730)	3/6/1998 6:06:00 PM
From: Bill Murphy	Read Replies (1) \| Respond to of 176387

Tonight's news is old news for those who have been paying attention: At the same time, companies like Compaq have become victims of their own success in pushing prices for consumer PCs well below $1,000, a shift that is eroding profit margins and forcing a tighter focus on costs. But, while all those factors combined have resulted in a difficult near-term environment for some PC makers, analysts do not expect any of them to do lasting damage. "Fundamentally there are some shifts going on and short- term, there will be some winners and losers," said Bill Schaub, vice president of research at Dataquest. "But it's a mistake to look at this one quarter in isolation."One of those shifts is hurting Compaq, which is in an ongoing struggle to reduce the amount of computers sitting in "the channel" as inventory at resellers and retailers. Direct sellers like Dell and Gateway 2000 Inc produce machines in response to orders, removing the possibility of an inventory backlog. Compaq has missed several internal target dates to cut that inventory to three weeks of sales to better compete with the direct sellers and now plans to complete the project by June. However, inventory levels are currently nearly double that, industry sources estimate and reduction efforts will likely entail a near-term slowing of deliveries by Compaq, a process that may already be reducing its need for Intel processors.