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

To: Tradelite who wrote (56046)	4/8/1999 12:14:00 PM
From: rupert1	Read Replies (1) \| Respond to of 97611

Tradelite: Baz is a Dell long. All Dellheads fear the potential trend towards low-cost PC's because it starts to undermine DELL's main source of brilliant profits which it derives from more expensive models. DELL knows that if it attempts to enter the low-cost market it cannot compete with CPQ in price and margins because of CPQ's massive manufacturing ability and experience based on its very high volume sales. PC boxes may becoming less profitable but that is not to say they are not profitable to the high volume vendor. They also provide the basis for sales of peripherals such as printers and high end products such a servers, and storage. COMPAQ's long term commitment to even low cost PC's also ties in nicely with its interest in creating customers for Alta Vista - a growing source of revenues and profits.