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Technology Stocks : Dell Technologies Inc.
DELL 133.72-1.7%12:14 PM EST
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To: TigerPaw who wrote (150670)1/7/2000 12:44:00 PM
From: Lee  Read Replies (2) of 176387
 
Hi Tiger,.Re:. Consumer space is growing, but has lower prices

On the consumer initiative I have a few questions. If Dell is targeting big numbers here, as in 200k + units shipped, how will that affect the current BTO manufacturing process? Most of us who have worked in industry know that for large numbers, a batch type operation is the most efficient and this hasn't been directly addressed that I have read.

Also, if targeting the consumer, do you know what the plan is to reach those first time buyers who do not have ready access to the net? It would seem intuitive that a portion of operation funds would have to be set aside for the inevitable "hand holding" that goes with newbie users. Plus additional funds for Directed advertising would have to be allotted.

I guess the confounding part of the whole consumer end is that Dell avoided it for a long time due to the obstacles listed above, so why now have they decided to go after this business? Especially when the margins and growth seem to be in the high end server market? And more especially with the margins associated with consumer goods?

Perhaps these are not legitimate concerns but since Dell announced they were going to concentrate more on the core PC business, they became important to me.<g>

Cheers,

Lee
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