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

To: rudedog who wrote (36814)	11/18/1998 12:50:00 PM
From: JRI	Read Replies (1) \| Respond to of 97611

Rude- Not to pop a dog on a nose (I know better than that!) but look again at what MSD is saying here... "Retailers can sell all the low-cost PC's they want....But they aren't making any money off of them".. MSD is not saying COMPAQ is not making any money off of them....he is saying that the RETAILERS do not....and, for the most part, he is right... Did you see CompUSA's last quarter's results...And this, during a great (overall quarter) for the industry... As Compaq has squeezed the retailers (ever thin margins) even tighter, it will be interesting to see if the retailers will just (in the long run) to accept the new "rules" (as laid down by CPQ) or eventually look to other ways to make a buck...although the "redrawing of the lines of demarcation" with the retail channel will definently help the bottom line of CPQ in the short-run......it could hurt CPQ (in the long-run)...(Could CompUSA replace selling (a few, some, or all) Compaq's with their own branded PC's, made by Ingram or others) or (will HP or IBM come in with better terms to win shelf space) or.... I think MSD raises a legitimate question here...As you said, time will tell....