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Technology Stocks : Dell Technologies Inc.

DELL 119.82

-2.3%

3:54 PM EST

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To: Chuzzlewit who wrote (135532)	7/5/1999 3:13:00 PM
From: Mike Van Winkle	Read Replies (1) of 176387

Chuzzlewit, re: What is the transfer pricing policy? Details, details. I don't know how successful the PC division is on beating down the component division prices. Now that internal divisions profit and loss is in the spotlight and Gerstner is taking heat on loss of a billion USD for the PC division, I wonder if the PC division will get better internal prices? re: Second, IBM is not losing money. The reported "loss" is in the PC business. But how much of that loss is made up by the component business and tie-in sales? There could be three avenues that I could see for the component division to make up for the PC division loss: 1. IBM has more component sales because of its captive internal market. 2. The PC division is subsidizing the component division. 3. Sales of service or other products occured only because IBM has their own PC's or specific PC's that no one else produces. It would be speculation on my part to suggest that either of these is the case or not the case. I am sure Gerstner has an opinion. Thanks for the thoughts. Mike

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