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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: Knighty Tin who wrote (50205)	3/7/1999 12:09:00 AM
From: Activatecard	Read Replies (3) \| Respond to of 132070

If the growing unsold inventories at my local Best Buy and CompUSA are any indication, CDWC is toast. Just returned from my inventory visit. The number of Compaqs on the shelf, particularly models 5220 (AMD 380mhz K6-2$899) and 5204 (AMD 350mhz K6-2 $799) is truly stunning. Both models are marked down $200 in the last two months. IBM has less inventory, but still plenty sit week after week unsold. The E240 (AMD 400 mhz K6-2 $1099) is abundant. This computer has been discounted 25%. It was $1479 at the end of 1998. HWP doesn't appear to have stuffed the channel with computers. Rather, they have concentrated on overproducing printers! Is this vertically are horizontally integrated channel stuffing? -G- There are over 300 printers of every make and model in just these two stores. Compaq and IBM don't bundle HWP printers with their computer packages, so I wonder who is going to buy all these printers. Monitor supply is really impressive. Every size, take your pick. It will be interesting to see if Compaq's $899 and $799 price points sell the excess stock. IBM computers are just too expensive. Emachines with a Celeron 333mhz and DVD-ROM instead of a CD-ROM, are priced at $599,or $799 with monitor and printer. This is the competition. Emachines sellout. Compaqs and IBMs gather dust. Steve