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Technology Stocks : Intel Corporation (INTC)

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Nov 25 3:59 PM EST

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To: Robert Douglas who wrote (76602)	3/17/1999 5:08:00 PM
From: Aaron Cooperband	Read Replies (1) of 186894

Robert - re: "A friend and I both bought a Dell within a 3 month period. Both of us have problems with our floppy drives." If Dell is trying to cut costs for components there are a limited number of choices available. For branded components such as the CPU or the video board you can't pit one manufacturer against another to bring the price down. The consumer has an opinion on each specific component and isn't as willing to accept substitutes. On the other hand, for unbranded components such as the floppy drive, the case, the fan, the power source, etc., Dell can force its suppliers to bid against each other, reducing the price they pay for each component down to is absolute minimum. If I were Dell, I would do my best to squeeze Intel, etc. for their best price, but the non-branded components would be the area where I could extract maximum savings from my suppliers. In some cases, this may result in quality compromises for these components that are unacceptable. It seems as though the floppy drives on your and your friend's computers may have fallen victim to this situation. Aaron

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