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Technology Stocks : Dell Technologies Inc.
DELL 122.55+4.4%Nov 21 9:30 AM EST

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To: stock bull who wrote (102657)2/18/1999 4:30:00 PM
From: Zeeko  Read Replies (2) of 176387
 
Stock Bull, I know I weighing in late here.. but I believe this is the major reason Dell has chosen to stay away from the sub-1000s. I mentioned this yesterday that 1) aside from the reduced margins associate with these machines, individuals buying them are more likely to be novice, and 2) the expense associated with handholding may further reduce the slim margin (perhaps to a negative number).

With respect to item 1), novices, especially computer novice, get frustrated at some point. And whom do they end up blaming? The computer or the OS maker. Bill Gates... case in point. I don't think it serves Dell in the long run to be the target of the anger that every novice feels at some point. Let this free floating resentment fall on Compaq's, Gateway's, or the plain white wrapper's shoulders. If these novice get the hang of using a computer, then their prior experience will only serve to reinforce the concept of owning, or wanting to own, the best.....DELL

Zeek
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