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Technology Stocks : Intel Corporation (INTC) -- Ignore unavailable to you. Want to Upgrade?


To: Joseph Pareti who wrote (78544)4/12/1999 9:48:00 AM
From: Paul Fiondella  Respond to of 186894
 
Simple explanation for CPQ's troubles

They build up an inventory of older sub 350 AMD chips for Christmas.
Christmas quarter is a blowout for consumer sales.
CPQ has to discount its older chipped boxes and is left with a glut of them in the channel for Q1 to sell to nobody.
Consumers have no money to buy anything after the Christmas blow-out.
CPQ is left with no customers and even more obsolete products on the shelves as the PIII is anticipated.
CPQ has a bad quarter.
Analysts claim that PC sales are slowing down.

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Conclusion: Analysts are wrong.