Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Intel Corporation (INTC) -- Ignore unavailable to you. Want to Upgrade?

To: rudedog who wrote (60732)	7/18/1998 1:50:00 PM
From: Dale J.	Read Replies (1) \| Respond to of 186894

Rudedog, You need to separate CPQ's consumer business from the overall business to understand Schrock's statement... I understand and was aware of most of what you said. I was simply responding to the notion that there is little or no incentive to sell the high end PII, and I cited Dell as an example. Although CPQ did suffer from a very poor choice on inventory position going into 1998 which forced aggressive price action in the commercial products (and ate up the profits in 1Q and 2Q), they still sell about 10 times the 'high end' volume as compared to Dell. Dell is 'skimming the cream' in this segment and will have a hard time getting real enterprise penetration without a service business. True, but CPQ played a big role in their own problems. They will probably overcome them at some point, but I don't think even they know when. Unlike CPQ, Dell has executed flawlessly. They were at one time dismissed as a mail order company, and then they were dismissed as a PC only company. Dell has now successfully moved into the server market. There overall execution has been superb, and I wouldn't be surprised if Dell eventually enters into the enterprise service business. JMO BTW: I don't own any Dell or CPQ. These are my observations. Dale