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Technology Stocks : Dell Technologies Inc.
DELL 125.88-1.6%Dec 31 3:59 PM EST
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To: LemurHouse who wrote (37479)4/10/1998 4:12:00 PM
From: Chuzzlewit  Read Replies (2) of 176387
 
Andrew, I disagree, and the reason I disagree has to do with Dell's marketing, and consumer behavior. It has been argued persuasively that first-time buyers are the primary consumers of inexpensive PCs. I believe that such buyers are much less likely to purchase mail-order. If that's true, it would imply that Dell would need to develop distribution channels.

Additionally, Meathead and Jim Kelley have presented a substantial body of data that leads me to believe that the profit margin in these machines is minuscule. Therefore, the only reason to pursue such a strategy would be gain market share, but that only makes sense if there is brand loyalty among retail customers and you would hope that the following machine would be a step up. But here again, there is a lot of data refuting that notion.

Regards,

Paul
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