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Technology Stocks : Dell Technologies Inc.

DELL 115.43

-1.5%

Jan 23 9:30 AM EST

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To: David Harker who wrote (35093)	3/20/1998 4:47:00 PM
From: Jim Patterson	Read Replies (2) of 176388

OK, One last one. <<<Well, the math sure looks correct to me. If Dell choose to preserve "$ per unit" profit, yes, their margins would rise. You have studied Dell's margins, and lately they have been holding constant. That would imply that in the above example, Dell now makes less $ per unit, but chooses to preserve the 20% margin. That is their choice, either way. Big deal.>>> I think it is a big deal. Especialy when we are talking about the highest end of their product line. The area where they make the highest margins (we agree to this). It is one thing to make less on a $1500 PC that you don't make much on to begin with. I think it is more important when you are not going to make as much on the high end, where most of your profits come from. JMHO Jim

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