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To: stak who wrote (60501)	7/16/1998 1:45:00 AM
From: Dale J.	Read Replies (1) \| Respond to of 186894

Stak, Compaq Computer Corp.'s (CPQ - news) cheapest computer is now its most profitable consumer personal computer, the Wall Street Journal reported Tuesday...This is a new twist on PC profitability. I sure didn't think that the sweet spot for profits would ever be at the bottom of the PC world lineup. This doesn't give PC makers much of an incentive to load up onthe top-of-the-line PII's though. Oh really, you think the sweet spot for profits is the bottom of the PC lineup. And you think that because CPQ told you that. CPQ made 1 cent a share in Q1 and 2 cents a share in Q2 and don't tell me that was attributable to the DEC merger because it wasn't. DELL made over a billion in profit last year and DELL continues to focus on the high end. Just because CPQ told you so doesn't make it so. Dale

To: stak who wrote (60501)	7/16/1998 2:16:00 AM
From: Jim McMannis	Read Replies (2) \| Respond to of 186894

Sub $1000 will only be the sweet spot for a short time due to rapid currency fluxuation. When the price wars start again and prices drop, margins will adjust downward again. The stronger dollar is a nice shot in the arm for these companies though. Jim

To: stak who wrote (60501)	7/16/1998 11:36:00 AM
From: John Koligman	Read Replies (1) \| Respond to of 186894

Hi Stak, I certainly agree that this PC is no boat anchor, but as far as 'Chrome' is concerned I believe that Microsoft stated the 'minimum' configuration needed to run it would begin with the 350mhz chip along with the 100mhz bus. That would eliminate this box, but AMD's followon chip should work. CPQ really changed the rules back when they dropped the sub 1k bomb last year. It looks like they will continue to set the pace at retail, their high end 400mhz Intel equipped machines have also received some very nice reviews. As for thanking Intel, I don't know about that, it's clear to me that you really have to thank the competition for these lower prices. I doubt there would be a 'Celeron' or 'Mendocino' if the major manufacturers were not buying low end chips from AMD.... John