<<< Nonetheless, DELL is going to have to start landing BIG contracts with the Internet services companies (INTC, EXDS, etc.) in
order to continue the kind of growth you and I are used to.>>>
Moose:
1. One of the last Dell contracts was with a company that
can recommend or provide computers to 15 States.
dell.com
(in a few years we may read about Dell providing
computers to schools in 15 Chinese provinces)
2. Dell has moved into some bigger stuff, servers
using 8 xeon processors which cost about $1900 per Cpu
when they first came out.
That business segment is growing at about 100%/yr
3. Dells business/government sales are not a one-time only
thing. As part of Dells agreement to be the low-cost provider
Dell will up-date or replace those computers as systems become
obsolete or newer capabilities come on the market. An
example would be the recent capability to have computers talk to each other regardless of which OS or software the 'other guy' is
using. Installing the new board or software required would help
explain why Dell services is growing at a 100% rate.
One of the new buildings in Tennessee is devoted
to handling refurbishment or updating of those systems .
4. Peripheral sales thru Gigabuys or the original Dell
site will continue to grow. I have used about 5 cartridges
so far in an HWP printer purchased last year in the Dell
factory outlet- thats about $100 worth.
With Dell achieving a 55 to 60% win rate on new
contract bids, I believe Dell growth is still limited more by
manpower and manufacturing space ( and temporarily dram and LCD shortages) than by lack of customers.
5. Last year my son was sent to Brazil to help install
HWP and Dell servers. The import duties ran over 100% which
made some of them cost up to $100K with months of delay in customs
This should help explain why Dell is building that plant
in Rio Grande do Sul.
Instead of listening to doomsday analysts, try to
keep in mind the fact that Dell has doubled the number of employees in Ireland last year, sales in China are up by 600%, they are adding
50 (?)people/day to the Xiamen facility, they are building millions of
square feet of facilities on at least 3 square miles of
property in Austin, in Tennessee, in Brazil.
Summary:
The vision is still alive. The market will control Dells
growth rate, not a prediction by many that Dell will grow at
only 35%/ year from now on.
( feel free to correct any inadvertent mis-statements here)
Regards
Sig |
