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Technology Stocks : Dell Technologies Inc.
DELL 136.44+1.9%12:54 PM EST

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To: jim kelley who wrote (26696)1/1/1998 7:12:00 PM
From: Meathead  Read Replies (2) of 176387
 
Thanks Jim! I'm glad someone besides me actually took the
time to compare system prices. This mis-information is
out of control on who has the pricing advantages. Dell
knows that savvy buyers take the time to compare... that's
one of the reasons why their sales are anything but
suffering.

Since JP didnt answer my question about what percentage
sub-zero's made up of PC sales in Q4, I'll repost this:

Re: 40% OF DEC PCS SALES WERE UNITS PRICED UNDER
$1000.


I've seen a couple folks mis-interpret this...

To be clear, 40% of retail sales went to the
sub-zero segment in December. Is this statistically
significant and what does it really mean?

Using WorldWide Q4 PC shipment numbers from last year
to calculate a simple ratio can give us a quick clue.
Assuming that most retail purchases are for home systems..

Q4 96 Total units = 20.7M Home units = 6.5M

I use Q4 because it's when christmas occurs so the ratio of
home units increases.

This means 31% of all PC sales were to the home user who
typically shops retail at the CompUSA's and BestBuy's
of the world.

40% of 31% is 12.5%... add 2.5% for slop and thus we could extrapolate that 1.5 out of every 10 PC's or 15% sold in Q4 of
this year was classified as a sub-zero. This is not surprising
given the christmas holiday... let's see what percentage they
maintain throughout the year now that initial demand has
been satisfied.

People forget that businesses today make up 70% of the
PC market.

MEATHEAD
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