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Technology Stocks : Dell Technologies Inc.

DELL 133.20

+5.7%

Nov 26 3:59 PM EST

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To: Jim Patterson who wrote (35041)	3/20/1998 1:57:00 PM
From: Fangorn	Read Replies (2) of 176387

Jim, If Dell passes the full price cut through of course ASP will go down but because the profit per machine will stay the same profit margin will go up. If they make $500 on a $2500 machine that is 20% profit. If they make the same $500 on a $2300 machine that is 21.7% profit. How can this possibly be bad even if they sell exactly the same number of machines? By the way that $500 figure was pulled out of the air and is only used as an example.

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