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Technology Stocks : Compaq -- Ignore unavailable to you. Want to Upgrade?

To: FR1 who wrote (33679)	10/2/1998 8:43:00 AM
From: rudedog	Respond to of 97611

Franz - The thing to remember is that CPQ has much greater penetration into the commercial and consumer spaces than Dell. Simply matching Dell across the board on price costs CPQ 2 or 3 times as much as Dell in those markets. So they work the big accounts on a point by point basis. I think their strategy is actually the best way to maintain profitability. They are also working a whole new line directly targeted at Dell, using the basic components from the standard line, and sold direct. I believe the goal is identical features and delivery, across the board, at 5% lower cost. But they need to do some brand separation to avoid losing money on the bread and butter.