Kemble:
More thoughts on Dell for Y2K and vision:
1. Mikie has the production lines working like clockwork, as
evidenced by the 40% plus growth rate.
2. Small businesses seldom have surplus cash around, when they need y2k corrections, Dell's recently developed lease/purchase and financing programs will grow substantially.
3. Phone lines for technical information/support will get very busy. With the one-on-one, be direct relationships many of those calls will be to Dell. The load would be overwhelming but for the fact that Dell has set up the Premier pages so companies can
as much as possible determine on their own the best y2k solution
and even verify y2k compatability with on-line software made available thru Dell.
If they chose to use Dell solutions, which we hope many will,
it will be a computer that is compliant or a no hassle, thouroughly
verifed software fix.
Dell has moved far beyond the picture of a plain old vanilla box maker into the area of a full solution provider. Did that long ago.
The supposed threat of E-machines to Dell is nil.
As Chuzz continues to point out, Dell's use of capital is the best in the business and they have chosen to contract out a lot of the service side to existing companies with widely dispersed experienced people, in lieu of training a huge force on their own and getting involved with so many more persons ( and responsibilities to those people) in the workforce.
Some here have wondered why Dell does not do this or that, or
get involved in some (risky?) new ventures, but as a management has said, there are so many opportunities that exist, they can chose the
ones providing the best returns. And even the $4 bil cash may look small in light of those opportunities available. Am sure they will use it wisely, as in the TN expansion, the Brazil facility, the China ventures, the ISP connections.
They may even decide to use margin( spring a bigger bank loan),
or issue an IPO. But when you see Michael, please tell him to be careful with the use of that %^&%$%$ margin. Its a trap.
Sig
|
