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

To: Skeeter Bug who wrote (143189)	9/29/1999 7:22:00 PM
From: edamo	Read Replies (1) \| Respond to of 176387

skeeter.. not sure what you mean by "a price increase will cause unit sales to go negative" as long as there exists demand, the manufacturers will supply at a market price. the $50 cost increase much harder to absorb on a $400 machine then a $1500 machine. low inventory with a bto/jit manufacturing model does not mean that every time you reorder you pay a different price to the vendor. usually a long term supply contract has limited escalation clause, but more favorable de escalation clause. more risky if you have inventory and you purchased at a high point, then you can't adjust to market price due to high inventory cost. jit from vendors negates this. if dell has as you state "fat" profits they can survive temporary market condition.