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: mepci who wrote (161170)	9/27/2000 8:27:36 PM
From: rudedog	Read Replies (3) \| Respond to of 176387

mepci - despite the assurances from DELL IR as posted by Kemble, I don't for a minute believe that component costs have dropped by 47% in the high end. DELL was already 30% below CPQ on 8-way systems. CPQ has stated that they can not make enough to meet demand, and if their last quarter's performance (40% revenue growth) is any indication, they are not losing any business. They also picked up share... I also know for sure that XEONs are in short supply - at least at several of the vendors I have talked with, and certainly in the grey market where they can not be had for love or money. And the prices have not dropped at all. So where did these additional "component cost reductions" come from? Is anyone seriously expecting me to believe that DELL's costs in the high end are 40% of CPQs???? Yet that's what the DELL statement would have us believe. DELL has been taking pricing action right through the current quarter - this new action is a radical increase. None of the other majors has followed suit. This smells bad to me.