I have two of the most basic models of Squiers (Bullets) and love em

After doing a bit of work on them I'd even go as far as to say they are way much better instruments than the Japanese Strat I purchased in the eighties, both in sound quality and playability, the only criticism being the crappy trem system they instal in them. But you cant really expect that to be of good quality given the price of the guitar in the first place(£70/80 at the time) but can easily and fairly cheaply rectified to make it better.
Although the sound quality is good on them both from the standard pickups, I upgraded one with Seymour Duncans a while back, the difference being, I did'nt really have to to get a good tone but on the Japanese Strat it was a necessity as the pickups on that one sounded really cheap and nasty and I had to upgrade to get a decent sound out of it
Dont know what kind of kit they put in these guitars at the time but they were utter crap. I really wish at the time I'd checked out the Squiers of the day before buying that rubbish.
I'm of a mind to get a Squier Tele now once I see one that I like. Once again, there are some really good ones out there for the way much lesser cost than a Fender

Hugh.