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Technology Stocks : Dell Technologies Inc.
DELL 128.09-4.3%9:54 AM EST
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To: Jim Patterson who wrote (51495)7/16/1998 12:43:00 AM
From: Achoo  Read Replies (2) of 176387
 
<...The PC end is not loosing money. It is breaking even, barely profitable. The idea is to get the service deal and give the hardware away. Think cell phone...>

Jim,
Time will tell if profit margins on service will remain high enough to sustain break-even or money losing PC manufacturing operations.

Cellular phone giveaways may not be a good comparison. The phone company grossed more money on my first year's cellular phone bill than the listed retail price of the phone itself. (And I haven't done the research, but the cynic in me assumes that the actual cost of the cell phone is a bare fraction of its listed retail price.) There's no way to make that kind of service to purchase price return in computers, especially as you move into the high end computing solutions where a server can cost several hundred thousand dollars and up.
MarkN
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