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Technology Stocks : Dell Technologies Inc.

DELL 125.97

-1.0%

Nov 25 3:59 PM EST

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To: Lee who wrote (72225)	10/15/1998 1:34:00 PM
From: Mohan Marette	Read Replies (1) of 176387

REF:China/Dell- Looking at the numbers.... Hi Lee: Dell did 6% of $4.331B in Asia Q2 that is about $260 million,the profit margin was about 8% giving us a profit of about $20 mil from the region before taxes. Now China plant I believe has less than 300 people at the moment I believe and they came on line in Aug or Sept.The average annual salary in China is less than $2000.00,add to other operating expenses such as utility,taxes and such. As one can see even without the sale of single unit of PC the expense is very insignificant by any measure. Since I am not all that good with numbers I let others come up with the approx numbers.Anyway you look at it the expense per month or the annual expense can easily offset by the regional sales which is how Dell will report it anyway since they do not breakdown the numbers by each country. The monthly/annual expense in China for DELL should be less than the 'expense account' of Chainsaw Al or any other highflying American CEO. This is the way I see it may be I am too naive to know any better.

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