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Technology Stocks : America On-Line: will it survive ...?

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To: jhg_in_kc who wrote (12558)12/21/1998 12:30:00 AM
From: THE PHANTOM  Read Replies (1) of 13594
 
Something to think about DELL. Yes it has been a great performer, but some of the landscape has changed over the past several months. Gateway who also is like DELL reported that they would not meet expectations for this quarter. Also Compac Comp. has had a bad time in the past due to too much inventory and were caught with computer part prices going down for new computers which brought down the price. They still had to get ride of the old inventory which obviously had higher costs. They have now essentially done that. Now Compac is also going into the mail order business and building computers to order to directly compete with DELL. This will have an effect on DELL. As to how much, one will have to see. Also remember that hardware prices have been going down on computers and with it are profit margins. Just food for thought.

PHANTOM
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