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

To: Captain Jack who wrote (50538)	2/28/1999 11:58:00 PM
From: Night Writer	Respond to of 97611

Captain Jack, I have an old 286 we were playing games on until the battery ran out. I will have to replace it and key in all the stuff to get it running again. The hard drive has my old tax info on it. Don't worry, I have copies on floppies. NW

To: Captain Jack who wrote (50538)	3/1/1999 12:27:00 PM
From: rudedog	Respond to of 97611

Captain Jack - there are 2 well documented trends at a processor upgrade point - both affect current sales. First, since the volume sales are not either the current or new "fast" processors (in this case 450 PII and 500 PIII) but are processors that are at mature price points (350 PII and slower in today's market), core sales are not much affected by the transition. This is typically 70% of desktop volume. The remaining 30% is affected by those who want to wait for current high end (400 and 450 PII) to drop more into the commodity bucket, which is more than half of the affected population, and those who always want the latest and greatest, representing about 5% of buyers, or a little less than half of the transition "bubble". The usual way of managing the transition is to work with chip vendors around transition pricing, so that products in the pipeline can be discounted without too much pain (and can be promoted to move product prior to the new processor announcements), and by getting the newest products on the market with the first wave. Compaq has been among the best in the industry at managing this type of transition.