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Technology Stocks : Dell Technologies Inc.
DELL 152.40-1.5%3:59 PM EST

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To: J. D. Main who wrote (107747)3/5/1999 8:41:00 PM
From: Walcalla  Read Replies (1) of 176387
 
Thanks J.D. that is what we are all here for, to gather and give information.
This is from The Computer Daily News.
IBM, the world's biggest computer company, offers the broadest range of products in the industry, from the most powerful mainframe computers to software. Its service business grew 21 percent in 1998 to $23.4 billion, contributing more than a fourth of the $81.7 billion in revenue. But for much of last year, IBM's PC business struggled, in part because Dell's direct model revealed the inefficiencies of traditional PC suppliers.

That had helped fuel speculation that IBM might ask Dell to assemble some of its PCs in Dell's highly efficient factories. Dell, the No. 2 PC maker behind Compaq Computer Corp., had revenue of $18.3 billion in its most recent fiscal year.

For years, Dell's efficiency and minimal inventory have allowed it to squeeze extraordinary profit from a relatively narrow hardware product line. It was only in 1997 that Dell entered the business for servers, which are higher profit and more powerful computers that handle the world's e-mail and bank ATM transactions and that feed data to multiple terminals in offices.

Shortly after that, Dell launched its line of workstations, which are souped-up desktop computers used extensively by engineers and financial analysts.

Lambert and Scacco said Dell's relationship with IBM will grow in ways that help both companies. Scacco was asked about analysts' expectations as well as the speculation that Dell would produce PCs for IBM.

''Nothing would surprise me,'' Scacco said.



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