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

To: Jim Patterson who wrote (32899)	3/7/1998 10:30:00 AM
From: qpd	Read Replies (1) \| Respond to of 176387

CPQ problems are due to 1. Channel stuffing of older models in their resellers. Now have to resort to slashing prices to clear them. DELL has no inventory problems. 2. Significant efforts to build BTO model perfected by DELL. This does take corporate management time, which they admit is spread thin. Puts them in direct competition with their own resellers CPQ. Even if you were a loyal CPQ buyer, what would you buy a newer model directly from CPQ or an older model from a reseller for savings of few dollars? 3. While CPQ was trying going after the low margin sub $1000 boxes, DELL has been consolidating higher margin systems. Last quarter results clearly show this. Check the Wall Street Interactive story on CPQ warning: Analysts such as International Data Corp.'s Kevin Hause believe many of Compaq's problems are specific to the company. Compaq appears to be having more problems than competitors in paring its stocks of old computers because its management is attempting to do so many things at once. At the same time Compaq is trying to streamline its distribution process, the company is completing its merger with Digital. The deal was worth $9.6 billion when it was announced in January and is the technology industry's largest merger ever. Only last year, Compaq bought Tandem Computers in a $3 billion stock deal that doubled its sales force. Compaq is also trying to speed up sales of more powerful business computers. Its goal is to be among the world's top three sellers of a range of machines, not just PCs, by 2000. "Management is spread perhaps a little thin and is distracted by very large tasks and goals they've set for themselves," Mr. Hause said. Compaq chief financial officer Earl Mason acknowledged that the company was trying to accomplish several major goals at once. "We don't deny that we're trying to do an awful lot," he said.

To: Jim Patterson who wrote (32899)	3/7/1998 10:42:00 AM
From: Sabrejet	Read Replies (1) \| Respond to of 176387

Were any of those companies mentioned supplying "ONLY to order" with no returns from "stuffed channels" or warehouses with inventories? When INTC comes out with MERCED etc... are they going to give it away? The assumption you are all making is that everyone will want a computer that is outdated! Some consumers won't care. Some will. INTC and every other parts, chip, monitor etc... builder, supplier has a vested interest in trying to prevent what people think will happen. They can't give them away right after they build them. Until CPQ and all the other box makers can show a profit AND compete directly with DELL on price, DELL has nothing to prove. Everyone knew the day was coming when CPQ and others would have to address the pricing issue. DELL is the only one who was in position to cope with it. seczebra