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

To: PCSS who wrote (54487)	3/23/1999 8:25:00 AM
From: rupert1	Read Replies (1) \| Respond to of 97611

Michael: Just caught a lengthy programme on CNN about Intel. It followed its CEO around Europe. His main theme is that Europe represents 25% of the PC market, but Europe has only 50% of US penetration in homes school etc. He sees Europe offering lots of scope for expanding the PC "pie". Because Intel has such a large proportion of the chips market, its growth must come from an expanding market. (This is starting to become an argument for CPQ, too). He said that Intel does have a chip for the low-end PC or appliance market, but it does not yield good profit margins, and he prefers to concentrate on the high margin business. (CPQ commitment to low-end is said to be profitable, but it is vulnerable to competition. I like better its new emphasis on high margin, high-end hardware and services. Although EP and EM say that the DEC and Tandem acquistion are now complete, I get the impression that we have yet to see the change in status this will eventually bring to the revenue stream and the earnings growth. I would think that the next year will see the gearing up).