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

To: Mike Gordon who wrote (21875)	3/14/1998 9:30:00 PM
From: Jason W. France	Read Replies (2) \| Respond to of 97611

Mike you are welcome and thanks for the oppotunity to discuss this without any hostility or anger vented my way. there are no right answers just some facts that we need to share (and sometimes verify) and our analysis on those facts that we need to feel free to propose and debate in an public forum Jason

To: Mike Gordon who wrote (21875)	3/15/1998 7:26:00 PM
From: Andreas	Read Replies (1) \| Respond to of 97611

Am I missing something or is Dell laughing all the way to the bank while cpq and others beat their brains out over low priced (sub $1,000) computers? Has Dell shunned the low-priced market? And if so, why has cpq chosen to aggresively go after this market rather than compete with Dell on the $2,000 market. Or more to the point how can dell get away with the higher pricing when cpq apparently cannot?

To: Mike Gordon who wrote (21875)	3/16/1998 5:20:00 PM
From: Spots	Read Replies (2) \| Respond to of 97611

>>CPQ could easily fall into a trap of being the "low cost provider" with Dell being the natural upgrade. The 90% Dell growth YOY quote tends to confirm that. Instead of flying back and forth from Mass, CPQ needs to concentrate on reputation enhancement for the upgrades. If not, <1k yields less, tends to cause line problems in production due to savings on parts/labor, which causes quality gap, with end result of lower margins, reduced research, and EPS. To get an accurate picture, you must think of CPQ in the full enterprise spectrum. Dell does not play there. HP and IBM do play there. <Mohan, your cue, enter, stage right<gg>> You cannot make a reasonable analysis of CPQ without this perspective.