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

To: jmac who wrote (140889)	8/28/1999 9:58:00 PM
From: Mike Van Winkle	Read Replies (1) \| Respond to of 176387

jmac re: "But, DELL's under $600 PC's will not have the same profit margin as its upper range models." You may be right but Dell held off on entering this market until they could get their service cost down with the Direct Connect push button and simplified design similar to the iMac. Could be that the margin is there now. Cheers Mike

To: jmac who wrote (140889)	8/28/1999 10:30:00 PM
From: rudedog	Respond to of 176387

jmac - there is no particular reason that the low cost products should have significantly lower margin. CPQ has maintained good margins even in its lowest cost products and they have a higher cost structure than DELL - the consumer products were one of the few bright spots in CPQ's dismal last quarter. The DELL name can also command a premium. They might be a point or so lower on those products if they get very aggressive on price, but there is no inherent reason they could not maintain 22% or so.