Hi Gary! Exhibit I:
Dell CFO sees component prices falling
BOSTON, Sept 9 (Reuters) - Dell Computer Corp. Chief Financial Officer
Tom Meredith said Wednesday that the personal computer distributor does
not see firming component prices.
''We do not see any firming of pricing at Dell in the component front,''
Meredith said at the SG Cowen Fall Technology Conference in Boston.
Meredith was responding to a question from SG Cowen analyst Richard Chu,
who said there is a perception that component costs, such as monitors,
memory and silicon, are not falling as fast as they once werep
Meredith said capacity continues to be in excess of demand, forcing
prices lower. Even in periods when demand met capacity, he said
component prices continued to drop at the rate of 25 percent a year.
Meredith, asked about sales growth in the Asia-Pacific region, said it
will continue to be strong despite the economic crisis there, but he
declined to be more specific.
''We still feel very strongly that the growth of Dell in terms of the
back half of this year and beyond will be large,'' he said.
Dell's revenues from Asia-Pacific grew 35 percent in the first quarter
and 34 percent in the second quarter despite the slowdown, he said.
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Note 1: "Asia demand strong"...... "Back half of year and BEYOND (demand large)"
Note 2: Falling component prices and stabilizing ASP's mean (as you know) continued INCREASING MARGINS for Dell |
