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Technology Stocks : Dell Technologies Inc.

DELL 133.18

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12:59 PM EST

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To: Chuzzlewit who wrote (147623)	11/18/1999 11:59:00 AM
From: rudedog	Read Replies (1) of 176387

Chuzz - re: Other box makers end their accounting period in September, so the effects of the higher DRAM prices are likely to be manifest for Dell's competitors in the next earnings report I don't think DELL's competitors had the same problem and doubt their costs were affected in the same way. This was not just the DRAM price hike - DELL had long term contracts, many of which expired over the summer. Because of their bet on RAMBUS, they did not renew those to the same level as previously. When Intel delayed the RAMBUS chipsets, DELL had to purchase on the spot market and with short term contracts. The other majors did not have as large a bet on RAMBUS - CPQ and HP, for example, were planning on a launch more than 90 days behind DELL so they were already planning on DRAM vs. RAMBUS for 3Q and 4Q. IBM of course is capable of supplying its own DRAM if needed... SO I think this was an anomaly which just happened to hit DELL.

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