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

To: Jimbo Cobb who wrote (36967)	11/19/1998 4:42:00 PM
From: Night Writer	Read Replies (1) \| Respond to of 97611

Sure they will, next you will tell me that Dell buys more from Intel the Compaq. I don't think so. I don't think Dell has the high end market for it. NW

To: Jimbo Cobb who wrote (36967)	11/19/1998 6:13:00 PM
From: rudedog	Respond to of 97611

Jimbo - You can bet your bottom dollar if it comes down to it, INTC will give DELL priority over CPQ history and current practice says you're wrong on that. Intel is a business not a cheerleading squad. Dell does not give them volume purchase commitments with regular ship dates - they make Intel play pretty much the same JIT game as everyone else. In order to keep the huge volume of CPQ business, Intel gives CPQ not only very favorable terms but also first allocation and penalty money if Intel can't meet commitments. When the first XEON problems hit this summer, CPQ got the good chips before Dell. The same will happen this time. Why? Because Intel needs to keep their biggest customer happy, and also they would take a hit to the bottom line if they missed on their volume commitments. One of those places where Dell's JIT model comes back to bite Dell.