SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Technology Stocks : Dell Technologies Inc.
DELL 127.90+0.4%1:46 PM EST
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: ed who wrote (24897)12/12/1997 11:31:00 AM
From: jim kelley  Read Replies (1) of 176387
 
Ed,

RE: I do not think so !!!!

Thanks for your contribution.

The 4% net profit after taxes for CPQ is the official Paine Weber number.
None of the other analysts has produced any actual numbers
of which I am aware. The 4% goes to 5.8% pretax. On a 999 unit that
would yield 58$ per unit pretax.

Your $590 cost does not include any software or labor costs.

Win95 40
Bios 15
labor 10
Inventory Chages
-------------------------------------------------
65

Ship to US 90
Ship to Distributor 50
Ship to Retailer 30
--------------------------------------------
170

If it is made in Taiwan then multiple shipping costs become important.
Then the unit has to be moved into distribution and onto the actual
retail store where its is to be sold. Add the distributors margin and the
retail store margin and you can see why there is so little profit in the
low cost PC.

Compaq PBT 58
Distributor PBT 24
Retail Store PBT 40
----------------------------------------------
122

While the above costs are reasonable estimates and can be refined,
it is still easy to see how another 357 $ in costs are easily incurred.

Incidently, I called UPS and they quoted me a 268$ price on shipping
a 50 pound box from San Jose California to Taiwan. I lowered the
number because I am assuming the manufacturers can get lower
rates.

I think the Paine Weber Analyst is correct!!!!!!!
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News