Dell CEO Tells Investors That PC Demand Is 'Quite Healthy'
Dow Jones Newswires
April 8, 1999
By Christopher Grimes
NEW YORK (Dow Jones)--Dell Computer Corp. (DELL) Chief Executive Michael Dell told investors here that the company's advantages over other computer companies are "as strong as they ever have been," and that business right now is good.
As some investors have become worried that Dell's sales growth is slowing, company executives stressed at a twice-yearly gathering that its strength is sustainable. Dell said he sees a "massive upgrade cycle" as computer users migrate to Microsoft Corp.'s (MSFT) upcoming Windows 2000 software. And he said PC demand right now is "quite strong," adding that the overall market should grow by at least 14% a year through 2001.
The company also touted its new $999 PC computer offering, introduced earlier this quarter. Dell, the No. 3 PC maker worldwide, had previously avoided the sub-$1,000 PC market. Paul Bell, a senior vice president in Dell's home and small business operations, said the cheaper machines are capable of delivering "attractive returns" because of the efficiency of the company's direct method of making and selling computers.
Bell said the company will also be "aggressive" about pursuing lower price points in the future, too.
Tom Meredith, Dell's finance chief, gave an upbeat presentation, saying he was "pleased" with the company's progress in the current quarter.
"We will continue to grow at a multiple of the market," Meredith said. He said that for Dell shareholders, "The fun will continue," provided that the company execute its plans efficiently.
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