Compaq's net rises by 43%, but stock dips from record
Article Abstract:
Compaq earned $350 million in 3rd qtr 1996, well above Wall Street forecasts, and many analysts say the results indicate a rebound in the PC industry. Others contend that Compaq owes its good results to its position as the dominant player in the industry, since it benefits both from an increase in sales and from its ability to purchase components in higher volume, for which it receives greater savings. Compaq's earnings are 43% higher than the $245 million earned in 3rd qtr 1995, and its revenues increased 25% from $3.6 billion in the year-earlier period to $4.5 billion. Compaq attributed its success to new, successful products and cost-cutting efforts. Compaq also claimed that its 25% growth in sales demonstrated that the company was increasing its market share. Analysts say Compaq may suffer from Sony's and Toshiba's entry into the PC market, since Compaq lacks the merchandising, packaging and product design offered by the consumer-electronics giants.
Publication Name: The New York Times
Subject: Business, general
ISSN: 0362-4331
Year: 1996
User Contributions:
Comment about this article or add new information about this topic:
Sure it's No. 1, but its trying to change; Compaq Computer looks back and sees the competition gaining
Article Abstract:
Compaq is the biggest PC maker in the world, and to ensure that the company holds its number one position Compaq CEO Eckhard Pfeiffer has decided to remake the company. There is stiff competition in the personal computer market from rivals such as Dell Computer and Gateway 2000. These companies are able to sell made-to-order PCs directly to consumers for a very low price. To keep its lead in the market, Compaq will be growing from its present position as a PC supplier into a full-fledged computer company. This will require the company to change its relationship with all of its dealers, both large and small, who sell its computers. Compaq plans to begin building computers only as customers order them, beginning with a new desktop line of PCs.
Publication Name: The New York Times
Subject: Business, general
ISSN: 0362-4331
Year: 1997
User Contributions:
Comment about this article or add new information about this topic:
- Abstracts: Compaq profits rise strongly, and analysts are impressed. Compaq bolsters its top management. Pioneer in minicomputers is trying again at age 69
- Abstracts: Can U.S. companies even get a bonjour? France and Germany pose big challenges to competition in telecommunications
- Abstracts: The role of futures trading activity in exchange rate volatility. Does options trading lead to greater cash market volatility?
- Abstracts: A mean chess-playing computer tears at the meaning of thought. Man vs. machine: a rematch; as chess champ trains, deeper deep blue waits
- Abstracts: US West's Continental ambitions; thanks to communications law, a Baby Bell presses to be a cable power. part 2