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Technology Stocks : How high will Microsoft fly? -- Ignore unavailable to you. Want to Upgrade?

To: John F. Dowd who wrote (20275)	4/11/1999 7:15:00 PM
From: ed	Read Replies (1) \| Respond to of 74651

Well, for the long term, both DELL and CPQ need to change their business models. As you know the e-machines are manufactured and marketed by the same organization, and they do not have middle men. E-machine can be sold for $300 and the seller still have some profit , but , that is not the case for Dell, and CPQ. What is worse, CPQ is a middle man itself ( most of the parts were bought overseas and assembled here) , while their PCs are sold through distributors, so CPQ had two layers of middle man, how can CPQ make profit with $300 PCs ? So, either die gradually or change direction. The same for Dell. Just a matter of time.