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 : Compaq -- Ignore unavailable to you. Want to Upgrade?

To: Captain Jack who wrote (90785)	4/19/2001 7:28:30 PM
From: Jimbo Cobb	Read Replies (1) \| Respond to of 97611

DELL's superiority over CPQ is really starting to show from both an investment (stock) and a fundamental business aspect.... dailynews.yahoo.com quote.yahoo.com quote.yahoo.com Jimbo. PS: Cap'n....did U ever jump back N this market ???? Hope U at least weren't short !!!!

To: Captain Jack who wrote (90785)	4/19/2001 7:39:23 PM
From: Jimbo Cobb	Respond to of 97611

biz.yahoo.com Plenty of companies sold computers before Michael Dell started selling them from a Texas dorm room, but Dell has driven down the prices of computer hardware in one generation of equipment after another: first in desktops, then workstations, notebooks, servers, and now storage equipment. It's a simple formula, one that lowers innovation risk in an industry strewn with yesterday's mousetraps. Every step along the way, analysts have said Dell's direct-sales model wouldn't work in this or that market, or that the technology and services required to service new technology couldn't be sold at a commodity price. I'm not criticizing analysts here. If you're thinking about a business, these are the kinds of questions you should be asking. But the constant in the equation is that buyers want reliable products at a low price. Dell waits for innovative technology to advance to the point where open standards exist, then helps commodify the technology by offering a low-cost version and driving volume through the system. For all the arguments we've made about the beauty of proprietary technology and the deep moats created by high-end products here at The Motley Fool, Dell's strategy has its own advantages: The company worries less about building a better mousetrap, and more about operational efficiency and customer service. Its end-user market keeps growing as a result. The company keeps its cost structure low by selling products directly to end users rather than into the distribution channel, which allows it to carry less inventory and speed asset turnover. A low-cost strategy yields strong profits, but there are brand benefits as well. It's all driven by volume that flows from crossing barriers to fields of new customers.