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Technology Stocks : Dell Technologies Inc.
DELL 120.84+1.8%2:12 PM EST
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To: Lee who wrote (45971)6/2/1998 2:04:00 PM
From: Jim Patterson  Read Replies (1) of 176387
 
RE: Do you think that you view the PC industry as a static entity? Do you think also that ASP declines are a permanent affliction or do they vary according to market conditions and costs? Just curious because all your arguments seem to be based on the fact that the industry is static.

Nothing is static in the business world.
ASP declines are negative for the bottom line of every box maker there is.
ASPs are declining at a rate greater than at any point in the history of the PC.
The most likely cause for ASP declines is supply and demand. Today, box makers and thier supppliers can supply and make more parts and boxes than are in demand. This is a very dynamic supply and delivery chain. But, if supply of parts or boxes(boxes meand PC's) were short, then prices would not be declining as fast as they are.

MU had a cost advantage over all other DRAM makers. It did not matter, the stock is still @ 22 down from 95 and it should go back to 7-9 in time.

PC's are boxes filled with comodity parts. In the end, price will win. Dell will make money, but not as much as every one expects. Just like the Q2 miss.

DELL is probably part of CPQ's problems, But they still are maintaining their 35% unit growth. So dell is not hitting the unit growth picture. It is the slowdown in the over all end user demand that will ultimately hit them all.

Jim
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