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Technology Stocks : Dell Technologies Inc.

DELL 133.78

-0.1%

Nov 14 3:59 PM EST

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To: Sam Bose who wrote (140881)	8/28/1999 8:31:00 PM
From: rudedog	Read Replies (2) of 176387

Sam - A typical shallow analysis by Barrons. WHY will prices decline over the next year? And in WHICH markets? Lets say that DELL fields a successful line of personal appliances at a price of $499-699. Lets assume they sell like hotcakes. DELL's PC ASPs will decline, but this is incremental business for DELL, which has not done much in the low-price segment before. Lets also assume that DELL has margins on those products similar to their standard desktop products, just at a lower price point. The result is falling ASP but no margin hit, and increased revenues. This also ignores the increase in ASP across the whole of the business from sales of 8-way and high end enterprise products. In short, I don't think this applies to the industry as a whole, and it certainly does not apply to DELL. There are areas where DELL needs to develop product capability but the folks at Barrons will never discover them. They don't have a clue IMHO.

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