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

To: Chris McConnel who wrote (161197)	9/27/2000 11:58:30 PM
From: rudedog	Read Replies (1) \| Respond to of 176387

Chris - thanks for that digging. That clears the picture up a lot. Looking at the 6400, the discount is on the big system - a 4-way Xeon 700 with 1MB cache. That processor complement is a DELL cost of about $5000 if my other numbers are anywhere close. 1GB RAM is DELL cost of between $1,000 and $1,750 depending on the density of the RAM chosen. The difference in price is $13,854. The total cost of the processors and RAM is maybe $6,750, "grossing that up" for a 40% margin yields a total cost impact (i.e. if the processors and memory were free) of $11,250. We know the processors and memory are not free, but even if they were, we would still need another $2,000 in cost reductions to maintain margin. I don't get it. Where's the money coming from?