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

To: kemble s. matter who wrote (157870)	6/13/2000 5:06:00 PM
From: calgal	Read Replies (1) \| Respond to of 176388

Dell Computer May Boost Prices If Memory Costs Rise (Update2) By Justin Baer quote.bloomberg.com New York, June 13 (Bloomberg) -- Dell Computer Corp., the No. 1 direct-seller of personal computers, said it may boost prices on PCs for large customers if memory costs rise in the second half of the year. Dell has renegotiated PC contracts with major business customers in case prices climb for dynamic random access memory, the main computer-memory chips, Vice Chairman James Vanderslice said at the Bear Stearns Technology Conference in New York. Rising PC demand has tightened supply of everything from simple capacitors to complex Intel Corp. microprocessors, and analysts and executives predict a DRAM shortage during the second half. ``As we go forward, we expect DRAM supply to tighten,'' Vanderslice said. Analysts expect DRAM demand to double this year as PCs include more memory in each machine and sales of the server computers that power Internet sites rise. DRAM supply is expected to increase 60 percent to 70 percent this year. After hitting a low of $4.70 in February, spot-market memory chip prices have rebounded and have risen more than $1 since Wednesday. The benchmark 64-megabit chip spot price reached $8.26 yesterday. While DRAM makers sell most of their products through long- term contracts, the spot price is seen as an indication of demand and can influence contract negotiations. Shares of Dell, based in Round Rock, Texas, rose 3/16 to 45 1/16 in Nasdaq Stock Market trading. They've fallen 12 percent this year.