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

To: Diamond Jim who wrote (22588)	3/19/1998 12:38:00 PM
From: Sasha	Read Replies (1) \| Respond to of 97611

And here it comes 12:04 [IBM] IBM CUTS PRICES UP TO 20% ON PENTIUM II-BASED BUSINESS PCS.

To: Diamond Jim who wrote (22588)	3/19/1998 12:42:00 PM
From: James F. Hopkins	Respond to of 97611

Hi Jim; Look at Coke, Pepsi price war..they both have gone up a lot in price, since that started, so if no one wins how do they do that ? Could it be they both sell more volume , and need less margin with higher volume. Yep I think that's a factor. I know we drink less ice tea now days. Come to think of it, a price war in computers is more subject to hurt the TV business, than other computer cos, as more people get into using computers , and on the internet, more and more what do they get out of ? I for one read less news papers, ( except on the net ) and I read less books, and watch much less TV. Were at one time thoes huge TV sceens were of interest to me, I never bought one..and why would I now..heck I watch to little TV and would rather upgrade my computer..than get a BIG HUGE TV sceen..hmmmm this has got me to thinking. Jim

To: Diamond Jim who wrote (22588)	3/19/1998 1:00:00 PM
From: Stephen	Read Replies (2) \| Respond to of 97611

Usually, the only time the strategy of a price war works is if you are the biggest player and want to drive competition out of business. I cannot believe that Compaq is not gaining market share with its tactics and there are an awful lot of smaller name companies (Tiger et al), who are about to lose big time. Course, once the market share is gained and the consumer is happy with your product, you can raise prices again. I think that is the reason for the deal with Radio Shack - Compaq have targeted a part of the market none of the major players have been in before. Not such a bad idea ... but time will tell if it pays off. What it does show is that perhaps management are really looking at what is going on and trying to position themselves to grow in an area where consumers, because they want to partake in things such as the internet, have to buy a box of one kind or another. Heck, why not have a brand name intelligent box if its affordable ... Conceptually, I like that and maybe management do know what they are doing ???