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Technology Stocks : Dell Technologies Inc.
DELL 138.940.0%Dec 5 9:30 AM EST
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To: TigerPaw who wrote (134019)6/23/1999 10:17:00 AM
From: Meathead  Read Replies (2) of 176387
 
Re: A three year old case and power supply coupled with a new highly integrated motherboard could make a low cost, consumer friendly computer which could be sold at a profit..

This is even more unlikely. Chassis and power supplies change fairly
rapidly. To do this would necessitate the development of new electronics to fit old form factors... R&D dollars would have to be invested and they would never be recouped.

Besides, you are competing with offerings from the likes of eMachines
where $499 will get you something 4x more powerful than a 3yr old
system... So, how much could Dell charge for a lease returned system
with a 90Mhz Pentium? Furthermore, they would be foolish to offer
any kind of warranty whatsoever.

Bottom line, there is no money to be made on older systems.
And, Dell does not get back a large quantity of these older systems
anyway... nothing compared to end-of-life transition products.

If anything, older systems could be sold on the auction site as-is
after a general clean-up and test. However, Dell usually gets the
box, not the monitor, so they would have to supply one with the
used system. The economics don't make sense to me.

But again, you never know. Maybe Dell will find a way to do this
profitably... but I wouldn't bet on it.

MEATHEAD
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