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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 (35055)3/20/1998 3:30:00 PM
From: Fangorn  Read Replies (3) of 176387
 
Jim,
You changed my assumptions to make your point. If Dell passes the 200 dollars through they will still make 140 profit on the cpu so profit margin on that part goes to 28%.

I don't know how DELL will change their pricing but the ball is in their court and they have plenty of room to undercut the competition without hurting margins.

If we use your assumption I am going to assume enough additional volume in response to lower price to make up the difference.
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