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Technology Stocks : Dell Technologies Inc.
DELL 127.92+0.4%Dec 30 3:59 PM EST
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To: Meathead who wrote (24932)12/12/1997 11:58:00 PM
From: ed  Read Replies (1) of 176387
 
Thank you for your praise on my Kindergarden analysis. My analysis is based on the real cost
of components and add upward, and yours is calculated backward based on the assumption
of retailer and wholsalers' profit margin, and My calculation is that the cost of sub $1000 pc
is less than $500, and your backward calculation with 4% profit , the cost came to be $650
to $700. The problem for your calculation is that you already assume that CPQ's profit margin is 4% and CPQ's cost can not lower than $570 with 14% profit. My question is how do you know CPQ's cost can not be lower than $570 ? By your guess ? Kindergarden Guess ?
Pls give me an answer why you think CPQ's cost can't be lower than $570 ?
The cost of BIOS is less than $10 with EPROM being counted !!!!!!!!!!!!
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