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

To: kemble s. matter who wrote (140740)	8/27/1999 11:25:00 AM
From: D. Swiss	Read Replies (1) \| Respond to of 176387

Kemble babes, here is a repeat of what JD Main posted: Dell Computer's Rollins on PC Industry Outlook: Company Comment Austin, Texas, Aug. 26 (Bloomberg) -- The following are comments from Dell Computer Corp. Vice Chairman Kevin Rollins from an interview at Dell's DirectConnect customer conference in Austin, Texas. Dell, based in nearby Round Rock, is the biggest direct-seller of personal computers. ``We see a very healthy industry. We see opportunities for the industry to continue to grow, with the (Intel Corp. Pentium III) technology, with the Christmas buying season and with the government sector peaking in the third quarter for Dell. We see it as still a robust industry. There may be some downsizing on the corporate side with the Y2K issues, but we think those will be moderate, and we think the retail surge will more than account for it. ``Our second quarter earnings, in which you saw 42 percent revenue growth and a big pickup even from last quarter, would suggest that the trajectories are quite healthy. In the Americas, which is our largest business unit, we had a 47 to 48 percent growth rate. What that should tell the market, and what it tells us, is that size is not a barrier. When we execute crisply, we can still grow at very, very high rates above 45 percent.' On consumer and small business: ``Our consumer business grew very dramatically this past quarter on a worldwide basis, up 60 percent. However, even with that, we have only about 5 percent of the market worldwide in the consumer space, so we believe that's a real growth opportunity for us, a $10 billion opportunity for us over the next several years.' On the new ``Webster' PC, an hourglass-shaped device demonstrated at the conference that includes a button for summoning online support from Dell: ``What we were really highlighting was this notion of services, the ability to with an Internet connection go on and self-diagnose any needs you might have for the PC. We did that on an experimental platform that we think will be something that we can use in the consumer space. I think we'll have it for the holiday buying season.' On PC prices for the rest of the year: ``We've already got price points in the $849 range for our PCs, and they've been coming down over the last couple of years from about $1,700 for our lowest price point. There is still room for movement on that entry-level price point. However, that comes with an opportunity for a lot more bundling of services around those price points' such as Internet service, software, financing and support ``such that we never do sell a PC at that lowest price point.' On shortage of liquid-crystal displays used in notebook computers: ``The LCD screen supply availability is very, very tight. Hopefully in the next few quarters, there will be an increase in the supplies because right now the industry is constrained by LCD availability.' On new advertising campaign: ``What we're trying to come up with going forward is that Dell is the Internet company that can help corporate as well as small business and consumers get connected onto the Internet. That will be the primary message. On Internet sales, which already account for 40 percent of Dell's revenue: ``Probably by the first of the next year we will be close to 50 percent, and I think then we'll probably set the bar at 75 percent, and then continue to push our business until we get as many of our businesses to 100 percent Internet-transacted purchases and services as we can.' Aug/26/1999 16:08 For more stories from Bloomberg News, click here. (C) Copyright 1999 Bloomberg L.P. Any redistribution of Bloomberg content, including by framing or similar means, is expressly prohibited without the prior written consent of Bloomberg L.P. Any reference to the material must be properly attributed to Bloomberg News. The information herein was obtained from sources which Bloomberg L.P. and its suppliers believe reliable, but they do not guarantee its accuracy. Neither the information, nor any opinion expressed, constitutes a solicitation of the purchase or sale of any securities or commodities.(C) Copyright 1999 Bloomberg L.P. BLOOMBERG, Bloomberg News, Bloomberg Financial Markets, Bloomberg Television, Bloomberg News Radio are trademarks, tradenames and service marks of Bloomberg L.P. :o) Drew