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Technology Stocks : Dell Technologies Inc.

DELL 160.11

-1.2%

Nov 3 9:30 AM EST

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To: Mohan Marette who wrote (107468)	3/5/1999 10:43:00 AM
From: D. Swiss	Read Replies (3) of 176387

Mihan, ****DREWTERS REPORT****I just got off the phone with IR, here's the scoop: Gigabuys.com For the majority of the products they sell, Dell will not maintain any inventory. The only inventory they will maintain is related to Dell manufactured products. This means that Dell will leverage its internet presence to improve the top and bottom line with minimal inventory risk. Dell/IBM Deal The key component to this deal is Dell's ability to leverage how R&D $ are spent to address customers needs and therefore, becomes more effective. This is similar to the way Dell influences how MSFT and INTC spend their R&D $. Dell and other system vendors spend about 3-4% of total R&D $. The key is to influence how the remaining 96-97% gets spent. “THE CROWN JEWELS OF DELL'S PATENTED PROCESS IS NOT PART OF THE DEAL” Dell is open to any other deals with IBM, but at this point is taking it one step at a time. Earnings Estimates for Q1 ‘99 He indicated that, as a policy, they do not comment on estimates. However, he did indicate that revenues are on track with what they expected. He also indicated that he felt that the IBM, MUEI, and CPU issues were company specific. The current pricing environment is consistent with what it had been. MUEI problems are more related to their cost structure. If their cost structure is too high they cannot deal with pricing as effectively as Dell. As far as CPQ is concerned, there problems seem to be more about channel inventory management. I hope this helps. :o) Drew

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