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: Maven1 who wrote (157165)	5/15/2000 9:57:00 AM
From: rudedog	Respond to of 176387

Zeke - Greenberg is presenting a "glass half empty" view, DELL management a "glass half full". I am somewhere in between. DELL management did deliver on their lowered commitments, and showed respectable growth in a weak PC market. They are still the fastest growing and most efficient producer in the segment. But it is obvious to me that DELL is increasingly sensitive to the "boxmaker" label, and to the (IMO correct) perception that their core business, commercial desktop PCs, is increasingly difficult. Thus the discussion pointing out the big increase in the higher margin components - laptops and workstations. Although Darrell and a few others took issue with my statements about the "spin", I still think DELL was wrong to characterize those as "enterprise"... that will come back to bite them. They should, I think, have instead pointed out that this is how to manage for improved selling price and margin when you are the dominant provider of corporate desktops (which DELL clearly is, since when we remove CPQ's consumer sales, DELL is on top in units). That position is sustainable and accurate, and would make later gains in server and storage sales (which I assume will come) even more impressive.