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

To: freeus who wrote (40828)	5/7/1998 1:21:00 PM
From: rudedog	Respond to of 176387

Freeus - This was a classic long term volume play. At any given point in time, CPQ got by far the best component prices in the industry, due to their volume commitments. But if the price for those components falls fast enough, and CPQ (or its channel) holds the inventory long enough, then someone like Dell who pays a little more but buys the components a lot closer to the sale actually has lower cost of components at time of sale, and wins out. CPQ sure paid the piper in 1Q98.