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Technology Stocks : Dell Technologies Inc.
DELL 126.42+2.8%Dec 19 9:30 AM EST
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To: D.J.Smyth who wrote (171022)10/1/2002 12:26:01 PM
From: Scott Meyer  Read Replies (1) of 176387
 
The world is still computer illiterate. 86% of the world's population do not have a computer.

If we had a stock market boom while feeding 12% of the world's population with technological gadgets, what are the possibilities when a portion of the other 86% come on line?


But the question of relevance to DELL is: "Can DELL still make money selling to that remaining 86%?"

The remaining 86% are not going to be ordering $3000 machines over the web. There is a price point at which
DELL's business model is no longer efficient. Are people going to pay $50 to ship a $300 computer? $200? Ironically, in the developed world with fabulously efficient package delivery services, that price point is actually much lower than in the developing world.

If (and that's a big if) the remaining 86% of the world's population are going to buy computers, I submit that they're probably going to cost about $25 (max) and they're going to be distributed the old fashioned way: some enterprising soul drives a pallet of them to Timbuktu and sells them at the local market next to the Walkmen, and Gameboys. Sony and the other gadget makers know how to make a buck in that sort of market, but DELL and most of the US computer industry still have something to prove.
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