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 127.71

+4.2%

2:11 PM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Meathead who wrote (36598)	4/4/1998 3:59:00 PM
From: Eddie Kim	Read Replies (2) of 176387

Meathead, They don't call it a "PC War" because all the companies get along. It's a war of attrition based on slashing prices that kills off the weaklings. Just look at what happened in the early 1990's when Compaq started that PC War. How many computer companies folded? In addition Compaq must get rid of old inventory at any price before it becomes pratically worthless. As for Compaq, it has roughly $4 billion in cash ($2 billion from DEC...correct me if I'm wrong). 85% of all revenues come from corporate accounts. It has the highest revenue margins in the industry at 27.5% (1997) largely due to its dominance in server sales. So forget about your math, because Compaq makes more money per machine than Dell - even though they're less efficient (which is something Compaq is working on and hopes to solve by summer). As for Dell, there is no doubt in my mind that they are one of the top pc companies and will come out just fine. Yet, to say that Dell's margins won't be hurt is foolish. It might not happen, but I wouldn't bet on it. Dell just released there top Pentium II notebook for less than $4,000. That's a first. -Eddie

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next