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Technology Stocks : Dell Technologies Inc.
DELL 121.05+4.9%Feb 6 9:30 AM EST

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To: William C. Spaulding who wrote (933)12/7/1996 8:09:00 PM
From: Brian Lempel   of 176388
 
William, I think Patrick's phrase would work for us too. We just have some differences of opinion which may not be able to resolved.

I will first point out a serious flaw in your thinking. You say in your post:

<<On the other hand, Intel will benefit from the increased competition. It results in lower prices for consumers and businesses, and, therefore, more sales. It also increases product selection, and bigger profits for Intel!>>

If you say that Intel will benefit from increased competion because it will lower their margins, then why wouldn't DELL?

ALso, I really don't think that the Japanese are going to pose too much of a problem. The Japanese are mostly after the lower end Acer, Compaq and Packard Bell market at Best Buy and Circuit City. If the general trend toward direct marketers continues, they will not factor in too much. Also, DELL is obviously focusing on European markets, ecause revenue growth there is exceeding US growth, right? This will more than offset any money lost to the Japanese imports. In theory, shouldn't the Japanese computers be more expensive anyway because of taxes that will probably be passed on mostly to the consumer?

-Brian
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