Dell Technologies Inc. Message Board

STOCKTALK

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 136.44

+1.9%

12:54 PM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Jim Patterson who wrote (26517)	12/30/1997 8:54:00 PM
From: Meathead	Read Replies (1) of 176387

Re: INTC it would appear is trying to get the P II 233 into the Sub Zero segment. Exactly right. They are producing cacheless versions of Slot1 processors and even rolling out the LXr chip. They want to own the sub-zero market along with every other new market (Web appliances etc.) As Intel and Microsoft goes, so does Dell. You soon will see lower cost entry level corporate offerings from Dell, below the $1037 entry price of todays Optiplex. If Dell allowed lesser configurations like 16MB of ram, you'd see they are already one of the most competetive in the sub-zero segment. This is partly how the game is played... configuration options. Margins can actually be quite healthy on these systems due to their reduced complexity, risk and procurement hassles. Furthermore, corporations have a finite need for basic systems so don't expect a tremendous amount of cannibalization. And... Dell still won't target the first time home user. Way too much headache here... too much competition...requires retail presence... too much opportunity elswhere. PC's are a HUGE and diverse business. As for ASP's... we have a good idea of what to expect industrywide over the next few years in Desktops, Portables, Servers and Workstations. Desktops will take the brunt of ASP declines. If you are curious, try predicting the impact to Dell's earnings model if Desktop ASP's decline by 7% next year (thats twice what IDC predicts) yet Dell's server sales increase from 10% of revenue to 13% (that's less than half the growth of last year). Hmmmm, maybe ASPs go up! MEATHEAD

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next