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

To: Chuzzlewit who wrote (135528)	7/5/1999 1:30:00 PM
From: Edwarda	Read Replies (1) \| Respond to of 176387

First, IBM may be using PCs as a way to sell other products. They may simply be "loss leaders". Keep in mind that for years IBM used software and services just as a means of selling mainframes. It took a long time for the company to figure out how important software and services could be as a profit generator.

To: Chuzzlewit who wrote (135528)	7/5/1999 1:34:00 PM
From: Mike Van Winkle	Read Replies (1) \| Respond to of 176387

Chuzzlewit, the loss leader strategy works only if the fries and drinks are competitive (cost, quality, delivery, etc). Hence IBM moving manufacturing out of US. Earnings for components are not inflated if market pricing is used and IBM is losing money if they go into subsidized machines. Partnering is the solution around internal manufacturing deficiencies. While Gerstner plays games, IBM is losing money. Just some thoughts. Mike

To: Chuzzlewit who wrote (135528)	7/5/1999 3:08:00 PM
From: kemble s. matter	Read Replies (1) \| Respond to of 176387

Paul, Hi!!! RE: Nevertheless, Dell remains the low cost assembler of PCs, and its unsurpassed business model continues to threaten the competition. Therefore, it is more likely that IBM might want to subcontract the assembly of its machines to Dell, thereby using the profitable IBM parts and the efficient Dell assembly model. What a well written post...as usual Paul!!....McDonald's losing money on the burgers is a great analogy....my friends just see the funnel getting wider....the profits leaving more and more...and the service is point blank making "them a killin'" .....The "overhead" of the PC business is a drag where the human resources could be used to continue their extensions into the corporate world for more service...I have a very close friend who is service...IBM would have him work 14 hour days 7...days a week if he'd agree...Is it any wonder that DELL wants a piece of this business?...Meathead says it's a $640 billion business annually....I like DELL's chance of using their culture with those figures...NO wonder hand helds and other low cost ideas are not a top priority... Best, Kemble