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

To: Jason W. France who wrote (22050)	3/16/1998 5:44:00 PM
From: Matt Kaarlela	Respond to of 97611

Jason, I want Compac to gain market share in many segments including entry level machines. The Dell strategy is clearly working for them but I don't believe it will work for new users. The HUGE problem is most if not all first time buyers will have limited or no access to internet. Traditional retail market is the way to go. Going back to the concern over excess inventory, lets take an example of 2 companies. Company (A) has a retail market of 10,000 stores stocking an inventory of 80,000 desktop machines. Company(B) has 25,000 stores stocking an inventory of 100,000 desktop machines. Just because company B has 20,000 more desktop units in the channel, does that mean they are worse off than company A? Total number of units in inventory means nothing unless you look at the big picture. In this "buy it now, pay for it later" society, people (especially new users) want to buy it, plug it in, and have it work. Compac has made a name for themselves over the years by doing just that. I recommend them over any other brand to a new computer user. With Compac's huge purchasing power, they should be able to outcompete every other manufacturer on the entry level segment. All IMHO.