Semi-Equips - Buy when BLOOD is running in the streets! Message Board

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Technology Stocks : Semi-Equips - Buy when BLOOD is running in the streets!

LRCX 159.33

-1.8%

Nov 7 9:30 AM EST

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To: Pink Minion who wrote (10673)	8/21/2002 6:25:29 PM
From: paul_philp	of 10921

SemiBear, The reason no other PC company can replicate the Dell Build-to-Order model is the existing distribution channel. It would take time to educate the market that you are now offering a Dell-like service. During that time the PC company would still be depending on their distribution channel for revenue. The disribution channel would rebel as soon as the manufacturer started to compete with it. The switch from indirect to direct selling is very difficult for this reason. There are very few other product categories with an open and modular architecture. The architecture of the PC is what makes the Dell model possible. All the interfaces are standardized so Dell can buy components and simply assemble them together. Servers, PDA's, switches, routers, printers, disk arrays don't have the same modularity. I think you will see this start to happen in storage and servers at the low end of those markets. Paul

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