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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: Grandpa Joe who wrote (124923)	5/15/1999 3:49:00 PM
From: JRH	Read Replies (1) of 176387

RE: IBM is still losing money in its PC business. IBM lost almost a billion last year in PC's I think. But didn't they make money last quarter? This thread really knocked the comments that IBM was a beneficiary of the internet but I disagree. I think many underestimate the clout and potential market power big blu has. Their global services division is growing as fast as they can higher college IS grads (they were the single biggest employer out of the MIS program at my school). Global services will enable them to sell even more PC's and servers to the medium and large clients they have already...and they are gaining accounts at a rapid rate (to the detriment of cpq and others probably). IBM can go in and say, OK, I'll match Dell on pricing on the boxes, provide you with an E-commerce implementation and support, get you set up with a nice intranet etc and then gain the margins through the services. Inventory management is getting better at PCs. PC's is looking at IBM storage for commodity management. Storage is a cash cow for IBM surprisingly....and looks to be getting stronger yet. So is IBM going to be putting pressure on Dell? Sure, especially with their breadth of offerings in comparison. Am I concerned with Dell's position going forward because of it? A little. Am I concerned with Dell's valuation? Yep. Only because there isn't much discount for future troubles. I've held Dell for a while and plan to hold it for years to come. But I get perturbed when people on this thread paint it as invincible. IBM, GTW, and even Micron are strong competitors. Just my opinion. JRH

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