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

To: John Koligman who wrote (135307)	7/1/1999 11:07:00 PM
From: Meathead	Respond to of 176387

John, they don't seem to be sure whether Dell is feeling the pinch or not. They do seem somewhat certain that Dell is maintaining margins. Nevertheless, I respect IDC's opinions. But, much of this was brought on by Compaq. I've heard they engaged in a fair amount of aggressive price cutting just so Dell wouldn't win certain accounts... selling for a loss at times. Part of this strategy is reflected in their earnings (read: loss). This tactic is hardly sustainable and with Compaq's severe troubles, will likely end if it already hasn't. We really won't know until the quarterly earnings stories play themselves out. One thing for sure however, HW prices always have, and always will continue to fall. I've never, ever seen them go up. Dell does continue to take market share, the market itself continues to grow, the internet expansion adds fuel and Compaq's troubles are a bonanza for Dell. These are very strong offsetting conditions. MEATHEAD