EMC How high can it go? Message Board

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Technology Stocks : EMC How high can it go?

EMC 29.05

0.0%

Sep 15 5:00 PM EST

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To: Tony Viola who wrote (4889)	3/15/1999 12:24:00 PM
From: JRI	Read Replies (1) of 17183

OT Question for you.. There has been some talk on the Dell thread that one of the advantage of the new IBM-Dell agreement (for Dell) is that Dell will no longer have to pay a 1% royalty payment (that Dell apparently pays to IBM on EACH box that they sell!)...One threadsters calculated that had this agreement been in effect in Q4...Dell's EPS would have gone from .31 to .34 (.336!)...(I haven't done any research on this...but it (the royalty payment) was mentioned in the agreement).. Any ideas on this? Would this be similiar to (royalty payments) that others have made to IBM over the years? If the threadster (I mentioned) is right...that would seem to be powerful incentive to the supplier agreement (since Dell was ALREADY buying/needing to buy these component/work on these technologies anyway..)

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