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Technology Stocks : Dell Technologies Inc.

DELL 133.92

-4.9%

3:59 PM EST

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To: Father E. who wrote (40767)	5/7/1998 4:26:00 PM
From: Geoff Nunn	Read Replies (2) of 176387

Father, You may be the very first person here to suggest Dell products are overpriced. We've seen lots of other folks -- mostly bears who come and go, take a very different view. They claim that pc's are a commodity. If a good is a commodity, any two brands are perfect substitutes by definition. If pc's are a commodity, any two similarly configured systems from two different boxmakers would be priced the same, and Dell would not be able to overprice its boxes. Informed buyers will not purchase brand A when perfect substitute brand B is available for less money. Of course, pc's are not really a commodity. Anyone who has followed this thread knows better, thanks to earlier, excellent posts especially by Meathead. Nevertheless, it doesn't follow that Dell can price higher than its competitors. Perhaps IBM and CPQ at one time could do that. Today, high-end buyers are too sophisticated, too well informed and have too many choices. Dell's currently brisk growth rate in the face of so much competition strongly suggests its prices are competitive. What more proof do you want?

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