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Technology Stocks : Dell Technologies Inc.
DELL 127.54+4.1%2:43 PM EST
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To: Chuzzlewit who wrote (72042)10/14/1998 8:31:00 PM
From: stock bull  Read Replies (1) of 176387
 
Chuzzlewit, I must believe that Dell's procurement contracts have taken into account the possibility of price increases. I would think that the contracts have clauses that control the rate of price increases for the components/materials that are purchased. Also, price increases would affect all the box makers. Since the other pc companies have been cutting inventory turns, they too will feel any price increases sooner than latter. Although, they will probably experience the increases a little latter than Dell...as I said, this would depend on the type of contracts Dell has with its suppliers.

Jobs (Apple CEO) said today that Apple's inventory has been reduced to 3 days. (He may have said 4 days, don't recall the exact number). By the way, he gave Dell a compliment by says they do an excellent job in managing their inventory. He noted that Dell's inventory was at 8 days.

So, I not so sure that component price increases will hurt Dell without also hurting all the other box makers.

Stock Bull
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