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Technology Stocks : Dell Technologies Inc.

DELL 133.20

+5.7%

Nov 26 3:59 PM EST

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To: arthur pritchard who wrote (116912)	4/13/1999 3:11:00 AM
From: rudedog	Read Replies (3) of 176387

arthur, scott - DELL enjoys far and away the closest engineering relationship with DELL and that collaboration has paid off big time for DELL. What I said was that Intel is SOOOO hard nosed about their pricing policies that CPQ's volume gives CPQ a cost edge - an edge that DELL has been eroding. DELL's Intel volume must be closing on CPQ's. But CPQ is still Intel's biggest customer. This strategy (no "special deals for friends", just straight volume discounts with additional discounting for precommits etc.) was one of the reasons Intel had such an easy time with the FTC investigation. But don't discount the huge value of the trust in the relationship between these companies. It may not mean discounts on chips, but it means Intel will be there when DELL needs them with marketing and engineering help. The relationship between Intel and CPQ has been strained for many years and the volume discounts are almost certainly the only significant benefits Intel gives CPQ. They are after all competitors on chip technology and bus standards.

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