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

To: D. Swiss who wrote (153678)	2/11/2000 12:59:00 PM
From: rudedog	Read Replies (2) \| Respond to of 176387

Drew - but my point is the events that occurred in Q3&4 that caused the margin erosion should not be a problem in the coming Q's Yes, but DIFFERENT problems will cause margin erosion - in particular, ASP decline in the commercial desktop space. That will also make DELL's revenue targets harder to hit - if they go after that business they have to loser prices which drops margin and revenue, if they don't they lose share and even more revenue. They don't currently have a product which could be sold profitably at the iPaq price points but I'm sure they could bring one out. So I anticipate a different set of excuses, but the same margin pressure.

To: D. Swiss who wrote (153678)	2/11/2000 1:47:00 PM
From: GVTucker	Respond to of 176387

Drew, RE: my point is the events that occurred in Q3&4 that caused the margin erosion should not be a problem in the coming Q's. Flat panels are readily available, DRAM prices are easing and hopefully Intel will get its act together with regard to it chip supplies and Dell wont have eat added cost of giving customers more than they asked for (i.e., 500's instead of 450 pentium). True. I guess that I just don't believe management's excuses. In fact, if management was being completely forthcoming, then their guidance for the current quarter would be woefully low, because their excuses of previous quarters are no longer present. Either management is purposely low balling the quarter (probably your logic) or management is being less than completely open with the reasons for the margin erosion (my logic).