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Technology Stocks : Dell Technologies Inc. -- Ignore unavailable to you. Want to Upgrade?

To: edamo who wrote (133947)	6/22/1999 10:28:00 PM
From: Meathead	Read Replies (1) \| Respond to of 176387

Re: what makes dell unique in the bto model is that they do it without their own r+d... You are thinking of Gateway. This is a common misconception. Dell spends $300M annually in R&D. They lease large amounts of space in Austin from Trammell Crow just to house all the engineers. These electrical, mechanical and software engineers turn out some 15 new PC, Server and notebook platforms every 9-12 months. Dell designs the products that generate 85% of their revenue stream. Intel and Microsoft also rely on Dell to validate and debug silicon and beta code. This engineering organization has also generated quite a few patents, so much so that they had strong leverage in the recent IBM deal. Dell depends on R&D in the form of chipsets and microprocessors from Intel, video solutions from leading suppliers like ATI/S3, hard drives from Maxtor/Quantum etc. etc. So does Compaq. They are master integrators. Dell decides how and what to integrate from the myriad of technology offerings in the marketplace based on customer demands. A major difference is Dell is more efficient at designing and bringing these products to market than it's competitors. For proof, just compare Dell's hardware offerings to Compaq's and then compare R&D spending. In reality, the Intel's and Microsoft's of the world are dependent on Dell. Think it through!<g> MEATHEAD