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

To: rudedog who wrote (144596)	10/14/1999 2:28:00 PM
From: Mike Van Winkle	Read Replies (1) \| Respond to of 176387

rudedog re: The reason DELL killed CPQ and everyone else in 1998 was that they were able to pick the lowest cost components and get those into boxes faster than anyone else. Long term contracts reduce their ability to do that. <<<< Dell's long term contracts with suppliers are not fixed price instruments, instead prices are tied by formulas to spot prices, quality, and other measurements important to Dell. If you check out their multi billion $ contract with IBM you will see what I mean. Cheers Mike PS Late to a party is good if it is the right time. Obviously, it was not right for Dell before now. I consider the tight LCD supply to be good news. I mentioned Taiwan to highlight the competitive nature of the business that prevents suppliers from cornering Dell in any deal.

To: rudedog who wrote (144596)	10/14/1999 3:00:00 PM
From: jim kelley	Read Replies (1) \| Respond to of 176387

Dog, Re: "The reason DELL killed CPQ and everyone else in 1998 was that they were able to pick the lowest cost components and get those into boxes faster than anyone else. " You are way off the truth with this statement. Clearly, CPQ was driven by the need for the lowest possible cost components because they were into the low end of the PC market. DELL was purposely out of that market. DELL's real advantage has always been in the operational costs not the product margin costs. CPQ ostensibly had lower product component costs than DELL but their other costs were enormous. Sorry, but you are way off base in your post. You have got it really backwards. :) Jim Kelley