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 : Compaq -- Ignore unavailable to you. Want to Upgrade?

To: rudedog who wrote (76793)	1/26/2000 6:40:00 PM
From: Night Writer	Read Replies (2) \| Respond to of 97611

rudedog, You sound like a man who is hedged or sold his Dell. NW

To: rudedog who wrote (76793)	1/26/2000 6:58:00 PM
From: rupert1	Read Replies (1) \| Respond to of 97611

rudedog: on the IDC and DELL comment - never confuse units with revenues, and never ever with profits. A COMPAQ investor should not need to be reminded of that. COMPAQ's 15% sequential gain had an easier baseline for measurement than DELL's. Neverthelss, COMPAQ shows progress and a positive trend, whereas DELL's doesn't. Given that iPaq did not ship until this week, I doubt that it can have affected DELL's November and December - but maybe DELL knows something about orders for January that we don't. The impact on DELL of iPaq could be more devastating than we have considered. To compete they have to drastically reduce their revenues from commercial PC's, their main source of income, by trying to meet the iPaq price range. But they are still more expensive. And iPaq looks like being a more powerful and user friendly machine. Better still it is in the market now.

To: rudedog who wrote (76793)	1/27/2000 8:10:00 AM
From: JDN	Read Replies (2) \| Respond to of 97611

Dear Rudedog: OK as an accountant I will explain it to you. DELL business plan calls for basically just in time inventory. That means when component prices are falling Dell can quickly drop the PC prices, pick up market share and still maintain their margins. However, when component prices are RISING just the opposite happens. They have to raise prices faster than the competition (if they can) and if their should be a little lag in components (spelled microprocessors) they either have to forego the sale or switch in an upgrade at no additional price. I would say, over the next cycle of rising prices that Dell will now at a minimum no longer have a competitive advantage and at a maximum may even perform worse than CPQ. Then, to top it off for the whole box makers community DELL got the public used to continually dropping prices, wont be so easy to put in continual increasing prices. Bad for us all. Got it!! JDN