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

To: calgal who wrote (164853)	4/20/2001 8:33:54 AM
From: kemble s. matter	Read Replies (1) \| Respond to of 176387

Leigh, Hi!! RE: Dell's Willingness To Go To War On Prices Gave It Lead Dell's claim to fame is its ability to keep costs down by selling directly to customers, rather than relying on distributors or retail stores for sales. Competitors such as Compaq and Hewlett-Packard which rely on such indirect sales channels were forced to contend with an inventory build up of unsold PCs leftover from the fourth quarter of 2000, forcing them to suppress shipments during the first quarter to work down the glut of inventory. Dell especially benefits when the prices of components that make up computers, such as memory chips and liquid crystal display (LCD) screens, fall as they have in recent months. Dell can buy those components at the latest, lowest price, and then sell the finished computer for less. ``Right now they are absolutely strangling the market with their aggressive product pricing declines,'' Kay said. ``Their competitors can't move fast enough to pass along the lower component prices.'' In order to gain share, analysts said, Dell had opted during the recent quarter to cut its gross profit margin to 18 percent from 21 percent, giving it greater room to cut prices, pass the savings on to customers and thereby gain market share. ``I just see this trend continuing to accelerate for Dell,'' Kay said. "PASS CPQ SOMETIME LATE 2001"...1997 "EXPOSING THE RIP-OFFS OF THE PAST"... 1998 "A FRICTIONLESS EFFICIENCY THAT WILL STRANGLE THE COMPETITION" Jan. 2000 "CPQ IS IN THE REARVIEW MIRROR, I'M MUCH MORE FOCUSED ON SUNW" Fall 2001 "EMC...EXCESSIVE MARGIN CORPORATION" Fall 2001 Are ya listening yet? :o) Best, Kemble