Dell Technologies Inc. Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Dell Technologies Inc.

DELL 138.06

-0.7%

2:53 PM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: rudedog who wrote (164112)	2/15/2001 11:56:15 PM
From: Meathead	Read Replies (2) of 176387

Rude, I understand your position which is shared by many. A couple of things to consider though. There is huge opportunity in the PC space right now to gain not just decent, but incredible market share. A market where Dell can almost always turn a profit in where no one else can. I would definitely question their intelligence if they did not seize the opportunity to eliminate competitors during this possibly fleeting phase. Incremental dollars are just that... you don't turn it down if it's virtually handed to you. Desktops can seed and pull other business. That being the case, it will obviously dilute the percentage of revenues generated from a growing enterprise business. In absolute terms these businesses are growing quite well. PC's and low to mid range enterprise offerings are the 800lb gorilla of the computing world and market share is very important. New corporate customers equates to a recurring revenue stream and Dell hooks a pipe between them that allows product to be continually sucked out of their factories. Besides, Dell is not suffering from a severe lack of enterprise product offerings. They have very competitive offerings as you know. They're just playing serious hardball right now, gaining share very fast but crimping the top and bottom line to do it. And from what I can tell, they aren't pulling back on product development in these areas. You are right. They are trying to commoditize everything and the ultimate end game is stagnation. But they have'nt done it yet in servers or storage. That still leaves a lot of opportunity for growth and profits along the way. So Compaq is more interesting but Dell is more profitable. I'm confused, which stock will do better? MH

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next