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 129.94

-6.2%

Dec 12 3:59 PM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: SecularBull who wrote (54669)	7/28/1998 10:43:00 AM
From: rudedog	Read Replies (2) of 176387

LoD - CPQ was on a 12M run rate in 1997, that works out to about 3M per quarter. They went into 1997 with 12 weeks in the channel, went in to 1998 with 16 weeks, so their inventory position went up by 4 weeks - so maybe 1997 was overstated by 1M units. That still leaves about 3M units in the channel at the start of 1998 that are not there now and would not be reported by either IDC or dataquest since they were in the channel already. Where did those 3M units go? I believe that half went out in 1Q and the other half in 2Q. Unfortunately for CPQ shareholders, those machines were built in 1997 at 1997 prices, and sold in 1998 at sub-1998 prices. Jim Kelley, Chuz, myself and others did a pretty extensive analysis on this a few months back. It looks to me like CPQ took a 30% hit on that inventory. I'm just trying to round up all the data. It looks like Dell did a great job of building share and better yet, did it profitably. But let's not get confused about market share or unit volume. Note that I'm also not saying that CPQ's policy to maintain share at the expense of profits was a good one, as a shareholder I think I would have preferred a few $$$ on the bottom line.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next