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Technology Stocks : Dell Technologies Inc.
DELL 133.180.0%12:59 PM EST
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To: Doug Fowler who wrote (23599)11/30/1997 12:17:00 PM
From: Meathead  Read Replies (1) of 176387
 
Doug - your are answering your own questions. The growth
in the $2000 plus systems home market will slow and to some
extent be cannibalized by the sub 1K. How will it
affect the $2500 ASP's in the corporate market? Remember,
93% of the corporate market belongs to everybody else, not
Dell.

What if Dell were to decide to forget the entry level home PC
first time buyers and focus on that 93% by dropping ASP's,
squeezing their margins a little, increasing volume, stealing
market share at an accelerated pace and growing revenue to
30Billion in short order. They'd still have 80% to go! That
would be tragic wouldn't it?

When you look at the big business segment picture, understand the growth opportunities and Dell's model, you realize that they could quickly put so many companies out of business if they decided to reduce margins a little. With such huge potential, why, why, why
focus on a low profit segment that does not play into the strength
of the business model youv'e spent 12 years developing that no
one else can touch?

I think too many people are completely confused about the
difference between the HOME and BUSINESS
PC segments and how they might ultimately affect or not affect
one another.

MEATHEAD
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