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To: Don Green who wrote (54479)	9/21/2000 2:39:06 PM
From: Don Green	Respond to of 93625

Dells Says Second-Half PC Demand Strong Thursday September 21 1:08 PM ET AUSTIN, Texas (Reuters) - Demand for personal computers has been strong in the second half of the year and manufacturers are getting a boost from falling component prices as predicted parts shortages have not materialized, Dell Computer Corp. chairman Michael Dell said on Thursday. ``The second half of the year is usually stronger than the first half and certainly as an industry that's what we're seeing definitely occur,'' Dell told reporters at his company's Dell DirectConnect conference for customers and suppliers. ``There were some perturbations in the first half that made that even more true this past period. So, demand is healthy,'' he said. Computer makers have been complaining about severe parts shortages in recent months and were expecting the problems to continue, but Dell said the situation has eased. ``In terms of components, I think we're seeing something we didn't quite expect to see as an industry and that's that the shortages aren't all their cracked up to be. In fact, we're starting to see components kind of come down (in price), which I think is a very healthy thing,'' he said. Dell said that his company, which keeps little parts inventory because of its direct selling and build-to-order model, enjoys financial gains when prices are declining at a faster than normal pace. ``Generally when component costs are going down faster, that tends to benefit Dell,'' he said.