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 125.97

-1.0%

Nov 25 3:59 PM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Jim Patterson who wrote (35028)	3/20/1998 1:14:00 PM
From: rudedog	Read Replies (2) of 176387

Dell has been predicting a small drop in ASP and margin (about a point in margin) which is unrealistic in the current environment. I think short term they can pick up the 'float' on component price drops to maintain margin, and if those drops happen frequently enough they have an advantage over their competition. But over the next 6 months, as I have said elsewhere, I think CPQ, IBM and HWP will put huge pressure on Dell's ASP and margins. We have seen nearly a 30% drop in price in major segments of the market in the last two weeks, and this is only the beginning. Even if Dell can maintain margin, as the ASP drops dramatically in a saturated market it will be hard for Dell to show the kind of revenue or earnings growth they need to maintain their stock price. It is very hard to generate unit volume increase in an inelastic market.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next