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Technology Stocks : Dell Technologies Inc.

DELL 126.42

+2.8%

Dec 19 9:30 AM EST

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To: Venkie who wrote (52877)	7/21/1998 6:01:00 PM
From: Patrick E.McDaniel	Read Replies (1) of 176387

Venkie, the lower ASP can actually be a good thing. At this point we don't know. It should come to no surprise that ASP will be lower as Dell sent out a flyer pointing out up to $300 off laptop and Desktop models. The $$$$/machine are a function of costs as well as sales price. If Dell was able to get components at $305 less than before this offer, there is a net increase in profits without even adding unit sales. As we know, when the price comes down unit sales will increase. My point, unless specific data on component costs are known to the investors, it is not specifically a bad event when ASP declines. Pat

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