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

To: Eddie Kim who wrote (34456)	10/9/1998 7:48:00 PM
From: rudedog	Respond to of 97611

Eddie - My best guesstimate for the $799 PC is $140 gross margin, remember the retailer makes some money too, his price would be about $700 from CPQ. Some of the more expensive machines are slightly lower margin but more margin $$ obviously. So depends on what he means by 'earns' - if CPQ is *netting* $100 on a $1250 PC we're all going to hog heaven, that would be 50% better than CPQ's best earnings and way better than anyone else in the business... But I think this 'insider' is misinformed, or the reporter misunderstood the 'insider' (which is more likely IMO). Still it is interesting that they are getting this alternate revenue stream. I wonder if they get ongoing revenue from web activities on these boxes?