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 127.61

+0.8%

Dec 23 3:59 PM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Mohan Marette who wrote (38051)	4/18/1998 10:10:00 AM
From: rudedog	Read Replies (1) of 176387

I don't like the idea that Dell is going to take mid-20's margins on servers when their rivals are driving that market with 35-40% margins now. Paul and others have looked hard at what the product mix needs to be to maintain Dell's margins and keeping servers and workstations as high margin products in the mix looks like an important factor. This is a good opportunity to gain server share with aggressive pricing but if the intent is to actually drive down high-end margins, the long term impact may reduce dell's flexibility to price the lower end of their line. Rapidly expanding server and workstation sales have been a major part of Dell's profitability for the last few quarters. Great tactical play though, hit the competition when they are least able to respond, pick up share.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next