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Technology Stocks : How high will Microsoft fly? -- Ignore unavailable to you. Want to Upgrade?

To: Dorine Essey who wrote (6206)	4/26/1998 11:42:00 AM
From: rudedog	Respond to of 74651

CPQ has been unable to meet demand in the consumer market even with factories running at full capacity, sales of these products are up nearly 100% against last year's qtr. Under these circumstances and with their other problems (the commercial desktop inventory excess) they have absolutely no incentive to discount their machines even a nickel. With retail channels already waiting 6-8 weeks to get new stock, why would they want to stimulate demand? GTW and Dell are using CPQ's shortage of products in the consumer channel as an opportunity to gain share through pricing action. CPQ would be foolish to respond until they can meet the demand they currently have.