Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: JB Wings who wrote (148191)	12/1/1999 8:05:00 AM
From: Calvin	Read Replies (2) \| Respond to of 176387

A negative point of view on the Webster ------------------------------------------------------------------------------------------ DELL's New WebPC Scott Greenberg Nov 30 1999 Don?t let the hype fool you. Dell may be stepping into the Internet appliance market, with the introduction of a light-weight, low-cost (for Dell) Internet PC but it won?t help its slipping margins. Dell's WebPC will come in product bundles ranging in price from $999 to $2,399. The new PC is similar to products from Compaq Computer and HP. As with Compaq's iPaq and HP's ePC, the WebPC does away with the old technology such as ISA ports and built-in floppy drives. Instead, these new machines will depend on "plug and play" USB ports and optical drives, such as CD-ROMS. Unlike Compaq and HP, however, Dell will target its new PC at consumers rather than corporate users. The lower price machine will continue to erode Dell?s ASP (average selling price), assuming a launch of 100,000 units with an ASP of $1500 this would reduce overall ASPs by a meager $13. Nevertheless, ASPs could decline over 10% this year as people seek out the convenience of these lower-cost Internet models instead of Dell?s more expensive traditional desktops. This will further pressure Dell?s already decreasing gross margins, which declined to 20.2% from 22% last quarter. The bigger story though is between the lines as Dell breaks precedent with its winning ways. SCI systems, a large contract manufacturer, will assemble the machines and they will come in only three fixed configurations. This drastic change from their build-to-order model with infinite variety will be a less-profitable shift for Dell. Rising chip prices, display shortages and acts of God (the Taiwan quake) may make them wish they had some inventory. And, if these ?convenient? machines do catch on, Dell may find themselves stripping down instead of building up more desktops. streetadvisor.com

To: JB Wings who wrote (148191)	12/1/1999 2:05:00 PM
From: John Koligman	Read Replies (2) \| Respond to of 176387

Except that the webster doesn't sell for 500 bucks. The high end webster I priced on Dell's website yesterday sells for MORE than an equivalent Dimension system with better graphics and a 2 year LONGER warranty. The other problem I see is that if you DO want to add peripherals, they cost MORE than if you just ordered a box with the peripheral built IN. Case in point - if you order an LS120 floppy drive in a Dell Dimension system, you can upgrade from the included floppy drive for 65 bucks. However, if you want an LS120 floppy drive for the web PC, Dell will gladly sell you one for 160 bucks. In addition, if you run out of USB ports for peripherals, now you have to spend bucks to buy a USB hub to connect more (assuming USB is working smoothly). Regards, John