NW--- Mikey is on a roll!!!
AUSTIN, Texas, July 16 (Reuters) - Dell Computer
Corp.<DELL.O> executives on Friday predicted their company
would be a survivor in a contracting PC industry and vowed they
would aggressively enter the market for Internet access.
Speaking at Dell's annual shareholder meeting, Chairman
Michael Dell predicted that one of the current top five
computer makers would soon be forced out of the business.
He did not name the company he thought most likely to get
out, but, as is his custom, took several jabs at troubled Texas
rival Compaq Computer Corp <CPQ.N>.
"There are not, we believe, dramatic, fundmental changes
going on in the industry. Prices have declined at fairly
predictable levels similar to trends in other industries, and
in this kind of environment the superior business model thrives
and those without it flounder," said Dell, whose company is the
king of direct sales to customers.
Using a chart, Dell showed that Compaq's cost structure was
"about double" that of Dell's, which is based in Round Rock,
Texas near Austin.
"This is a market where the inefficient will not survive. I
believe that one of the top five players in the PC market will
drop out over the next several years," he said.
Dell said the company was making a big push into
sellingInternet access along with its computers, partly in
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