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

To: rupert1 who wrote (54485)	3/23/1999 8:14:00 AM
From: rupert1	Respond to of 97611

Oops! I confused pfennings with percentages. CPQ is not improving on Frankfurt - its actually weakening slightly on a percentage basis.

To: rupert1 who wrote (54485)	3/23/1999 8:16:00 AM
From: hlpinout	Read Replies (1) \| Respond to of 97611

Morning victor, I'm not sure what Joe Kernan on CNBC was trying to say this morning. He showed Dell, CPQ, Intel, and Cabletron charts and alluded to possible earnings problems but didn't go anywhere with it. Seems a little early to take more shots at CPQ. From IBD: Is a PC Free? Depends On What 'Is' Is No Free Lunch; Can There Be Free PCs? Are Best PCs In Life Free? Jury Is Out Date: 3/23/99 Author: Nick Turner Is there really such a thing as a free personal computer? Several offers for free and nearly free PCs have emerged in the last few months. But no companies have demonstrated the ability to make money by selling computers for little or nothing, analysts say. The latest deal that some say is too good to be true comes from Microworkz Computer Corp., a private Seattle-based manufacturer. The company announced March 15 a full-featured PC without a monitor for $299. The machine comes with a year of Internet access. Since the Internet service normally costs $240, the deal essentially gives consumers the PC for $50, say Microworkz officials. Microworkz joins such companies as Emachines Inc. and Free-PC Inc. in pushing down prices. But each is using a different business model. Only Emachines, which sells models for $399 and up, has shipped PCs in volume. Consumers face a confusing array of choice over the next few months. They'll likely see a lot of good deals, but product supply may be tight. And there are no guarantees that the companies selling these PCs will be around forever. Pasadena, Calif.-based Free-PC Inc. has the most dramatic approach so far. The closely held company announced last month that it would give away PCs with monitors for free. Customers apply for the machines by filling out an online questionnaire. They must provide demographic data such as age, income, marital status and hobbies. The information is used to customize ads that will appear on the screens of the free PCs. Free-PC requires its users to spend at least 10 hours a month in front of the computer. The idea is that ad revenue will subsidize the cost of supplying the Compaq Computer Corp. machines. ''Consumers live with advertising every day on TV and radio,'' said Steve Chadima, vice president of marketing for Free-PC. Many people seem to be willing to put up with the ads. So far, 1.2 million people have filled out the Free-PC survey and are waiting patiently for their PCs. They may be waiting some time. The company will start shipping the first of a mere 10,000 PCs by mid-May. And it hasn't announced when more PCs will be delivered. For now, your odds of getting a free PC are slim. One out of 120 applicants can expect to have their applications approved. Chadima says, though, the company wants to ship a million PCs within the next year. Buyers looking to avoid the ads have other options. Some low-cost PC makers are taking advantage of the Free-PC hype to run counter-promotions. Microworkz, for example, is putting labels on its products that say ''Ad-Free-PC.'' Microworkz President Rick Latman doesn't think the majority of consumers will accept advertising-funded PCs. ''It's a lot to pay,'' he said. ''There are certainly a lot of strings attached.'' But Microworkz's credibility also has been questioned. It plans to sell a PC for $299, which competitors and analysts say can't be done without losing money. And it may be too small to produce a lot of PCs, they say. Microworkz officials contend they have the capacity to build 200,000 PCs a month. Though it's also a relative newcomer to the PC field, Fremont, Calif.-based Emachines already has emerged as one of the biggest names in the budget PC market. Launched in November, the company sold 37% of sub-$600 PCs in January, according to InfoBeads, a research subsidiary of Ziff-Davis Inc. Emachines earned the No. 5 spot in the U.S. retail PC market, edging out Apple Computer Inc. and other notables. But so far, Emachines hasn't matched the prices of its smaller competitors. Its cheapest machine costs $399 - without a monitor - and Emachines has no immediate plans to drop the price. ''The $299 PC is just an attention-getter,'' said Emachines Chief Executive Stephen Dukker. Hold the Fort, hio