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 133.35

+0.1%

Nov 28 9:30 AM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Chuzzlewit who wrote (38302)	4/18/1998 12:33:00 PM
From: rudedog	Read Replies (2) of 176387

Dell, like Gateway and in fact almost everyone but CPQ, has shifted to a model with Intel where Intel does the chipset (memory and I/O subsystem) and motherboard designs, and provides completed subassemblies to Dell. There are many advantages to Dell - Intel guarantees that Dell will be able to offer products using the latest Intel technology as soon as that technology is on the market, and Dell saves greatly on the R&D, since they don't need the expensive ASIC development and in-depth hardware teams and can devote those assets to serviceability and production engineering. This is the primary reason that Dell produces such serviceable boxes yet maintains percent R&D about half of CPQ numbers. But the benefit to Intel, and one of the main reasons for this Intel program, is that this strategy makes it very expensive for Dell to do a system based on other technology such as AMD. If Dell bought AMD they would also have to develop the core capability to do the chipset and motherboard design now done by Intel. Dell could certainly do that but it would alter their cost model and does not fit with their business philosophy or style.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next