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Strategies & Market Trends : MDA - Market Direction Analysis -- Ignore unavailable to you. Want to Upgrade?

To: ajtj99 who wrote (76678)	5/9/2001 7:56:05 AM
From: t2	Read Replies (1) \| Respond to of 99985

Who are these 2nd and 3rd tier makers Dell is referring to? Actually, Dell did not mention 2nd or 3rd makers. That was just my comment. Micron has packed it in and Emachines has itself up for sale---what I would call 2nd tier. I was actually referring to small, very regional PC makers as 3rd tier..the ones that sell only in one city or one state. Dell's price cutting and great component pricing advantages (bulk buying) will put too much pressure on these independents. Customers will start asking why bother buying no-name brands when a brand name PC is available for only a slightly higher price. That is what will put the little guys out and make it hard for the bigger names like Emachines. Many will continue to evaluate whether to stay in the PC market. Now Microsoft has released the retail availability date of Windows XP---October 25..Its official now. That means, the 4th calender quarter may show growth for boxmakers; meaning one should be buying their stock right (and especially MSFT stock, imho) now or in a couple of months. With Windows launch, growth is just about guaranteed and you can bet Dell is looking to increase margins into year end. biz.yahoo.com

To: ajtj99 who wrote (76678)	5/9/2001 8:03:19 AM
From: t2	Respond to of 99985

Additional comments from Michael Dell on the pick up in the PC replacement cycle in the 2nd half of the year. Just found this story. Sure beats buying the telecommunication stocks like Cisco. I would point out that significant Windows launches always stimulate PC demand. Dell's stategy to get lean and mean (aggressive price cuts) ahead of the growth period is a good one,IMHO. "He said how and when the replacement demand would kick in was difficult to predict, but added, ``I would be surprised if we don't have reasonable (industry) growth for the fourth quarter (of 2001) and the first quarter (of 2002)." Message 15774569