>>re: <<DELL will have 2 weeks to sell as many of these as they can.>>
Here is a question for you Long,
If DELL is build to order, then that would mean that on 4-15, they will start taking orders for these machines and start building them right ?<<
INTC will have the chips available for delivery on 4-15, and yes, your assertion is correct.
>>If they have prebilt any machines, then carrying that inventory for a week ot two will hurt their inventory turns number and raise their cash conversion cycle.<<
No prebuilts.
>>It takes them 7-14 days to build and ship these machines right?<<
Usually.
>>They don't collect the money until the machine ships Right?<<
Yes, and they don't pay for the components for another 50 days.
>>Then they will only be able to collect 2-9 days of revenue recognition from these machines Right?<<
Not sure of what you are asking here.
>>That looks more like only about 1 week to me.
Please correct me if I have made an error on this one.<<
I didn't make the point about "2 weeks to sell as many as they can". I think that DELL will prosper here regardless of how much further ahead they are.
>>On the other hand, CPQ IBM and HWP probably have large finished inventories of these machines on hand right now and Probably ready for delivery.<<
Yeah, just pull out the 266 Mhz Pentiums from the channel-stuffed PCs (after dusting them off, of course), and throw them away (take a charge to earnings), and replace them with the new chip. <ggg> (This is not possible, since the new chips require more integration than this.) I doubt that CPQ et al have huge inventories of ready-to-go 400 Mhz PCs, given the current cluster-f*** in the channel.
>>Heck, they might even be in the configuration channel now, just waiting for DIMMs, HD's, Videos, and Modem/Nics to be put in. Put the cover on and ship them out.<<
See above. ha ha ha
>>I wonder if CPQ will ship more in the month of April than DELL? :o<<
Given the fact that they (CPQ) weren't shipping much in March, maybe so! ;>
LoD
<< |
