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Technology Stocks : Dell Technologies Inc.
DELL 122.46-8.5%Nov 17 3:59 PM EST
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To: Irish King who wrote (33179)3/9/1998 10:57:00 AM
From: David E. Taylor  Read Replies (1) of 176387
 
Dell already has one Asian manufacturing facility in Penang, Malaysia. I didn't see any effect on DELL's earnings or margins from the Asian currency meltdowns last year, did you?

Michael Dell made the following point on CNBC last November after the Q3 earnings were released when he was questioned about the Asian currency effect: he said "which would you rather have -- a reduction in the selling price of 6% of your machines, or a corresponding price reduction of 86% of your components?"

Take a look at DELL's gross margins -- they've been consistently 22% +/- 0.5% for the last 7 successive quarters. That gives you some idea of how good DELL is at adjusting its selling prices and controlling its manufacturing costs, despite the rapidly changing component costs and seasonal PC demand changes.

David T.
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