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Technology Stocks : Dell Technologies Inc.
DELL 133.59-1.8%Dec 3 3:59 PM EST

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To: Christopher A. Smith who wrote (208)9/20/1996 11:44:00 PM
From: Neil McFadyen   of 176387
 
Christopher, let's say DELL has a 30% increase in number of PC's this quarter but makes $50 less money on each one. If you use $3000 as the average price per unit you get the following:

last Q rev 1690 mil / 3000 = 563,000 units

last Q net 103 mil / 563,000 = $172 per unit

(172-50) * 563,000 * 1.3 = 89 mil net for this Q

Based on the way DELL has been cutting it's prices this is not an unrealistic calculation. I tried adding up the cost of components for DELL's PC's and I think DELL might not even make $100 per unit.

Can anyone fine tune these numbers?
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