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Technology Stocks : EMC How high can it go? -- Ignore unavailable to you. Want to Upgrade?

To: Tony Viola who wrote (10727)	7/24/2000 11:44:02 AM
From: TigerPaw	Respond to of 17183

Dell ... years behind EMC I quite agree. But then SUNW was years ahead of Dell too in workstations. The past strategy has always to go after the high-profit mid to lower range of the business. The high end business and R&D are often subsidised by these higher volume his profit items. I think the term that was used at the Dell stockholder's meeting was collapse the umbrella. Once the margins are reduced in the volume areas the R&D and marketing expenses are all consentrated in the high end products. This makes the high-end where EMC excels even higher priced to cover the fixed expenses and opens the next opportunity. Even if Dell takes a fraction of the total market it sets pricing expectations for those areas. I don't know how this will play out, after all SUNW is still doing well, but anytime my biggest holdings come into competition I feel I need to monitor the situation closely. TP