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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 (23687)12/1/1997 1:53:00 PM
From: Meathead  Read Replies (3) of 176387
 
Doug - you can get all that today from dell for about $1200 w/monitor.
It could esaily drop to $800 shortly. Dell also has Optiplex
systems 166Mhz 16Mb/ram 2G HD etc. starting at about $1000. Corporate customers have always been able to satisfy basic entry level computing needs starting close to 1K... the questions are,
why have they historically not bought them in any large quantity?
Why is it, as of today, they aren't buying them. Why do they
insist on more full featured machines? Why is this all of a sudden going to change if the price drops a couple hundered more bucks?

The real reason is that the low end corp boxes can only fulfill
a portion of a company's needs, not anywhere near all of them,
and for most, not even the largest portion. We don't see this
changing in the next few years. We do see overall
ASP declines for corporate desktops on the order of 10% over the
next several quarters however, but for machines 4 times more powerful
than what's available now. This won't hurt too much. Contrary
to what you may believe, ASP's won't get cut in half overnight
because all of a sudden, Dell's customers feel they've been
duped or overbought or decide 200Mhz is enough.

Dell is also positioned to make up for lost margin's in the
Desktop world anyway with the server and workstation initiatives.

So, ASP declines in the desktop world are definately going to
happen... but not at the alarming rate some out-of-the-loopers
are predicting.

Cheers

MEATHEAD
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