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

To: rudedog who wrote (153685)	2/11/2000 1:11:00 PM
From: D. Swiss	Read Replies (3) \| Respond to of 176387

rudedog, at some point the industry has to wake up and realize that no one wins in a price war. The industry must return to rational pricing. Look how IBM and CPQ are doing in the PC business. At some point, they have to become more profitable and not just a loss leader. :o) Drew

To: rudedog who wrote (153685)	2/11/2000 1:13:00 PM
From: D.J.Smyth	Read Replies (1) \| Respond to of 176387

rude dog: "...ASP decline in the commercial desktop space. ...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." Dell experienced (a) 55% growth in server sales and (b) increasing ASP as a result. The server business has higher margins than the PC business. If there is erosion it wasn't demonstrated by this qtr.s announcement. Relative to this qtr. that is a figment. Product shortages causes prices to increase, not erode. Dell was not able to fill the expected demand. The major reason earnings were not met is that Dell increased it's labor force by 4,500 persons in one qtr. They obviously continue to expect big things. The internet is growing at 100% per year (possibly more now), and to function properly in this space a business needs a server - that includes India and China. The major falling out at Dell is (a) product shortage and (b) loss of investor enthusiasm. When you have Dell growing servers at 55% and SUNW at 26%, yet Dell is rendered with a signifanctly less multiple (even though future growth rates of Dell remain higher than SUNW), there are obvious disparaties in investor confidence and perception. You can blame Dell for not creating proper perception. But business continues strong. Adding 4,500 additional employees is not a formula for retracement. If it is, it's a really dumb one, a dumb way to go about growing.