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

To: Jack T. Pearson who wrote (48222)	6/19/1998 11:05:00 AM
From: jim kelley	Read Replies (2) \| Respond to of 176387

Jack, Re: CPQ Channel Inventory policy Thanks for the post. Apparently CPQ is and was accepting some percentage of returns of inventory. This could explain the warehousing rumor. So, Dog was not correct in asserting that they do not take merchandise back. Also, this article clearly states that price protection is their biggest cost. Good article. It helps clarify CPQ channel problems. Regards Jim Kelley

To: Jack T. Pearson who wrote (48222)	6/19/1998 11:52:00 AM
From: Geoff Nunn	Read Replies (3) \| Respond to of 176387

Jack, I think CPQ's announcement that it will lower prices more aggressively is merely intended to impress VARs unhappy that price -protection is ending. Otherwise, the announcement means little, IMO. CPQ is already required to price aggressively because of its recent production binge. CPQ's increase in units shipped last year (749,000) actually exceeded Dell's (623,000). CPQ along with HP have been chasing market share like two West Texas range cattle that suddenly smell water. PC prices are falling not only because of declining component costs but also because of excess supply, resulting from the production frenzy by CPQ and HP. Prices have fallen below production costs for all the top boxmakers except Dell. The question in my mind is when will the two of them begin to realize market share is a zero sum game, and can be self defeating when prices are below production costs. JMHO Geoff