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

To: rudedog who wrote (165451)	5/19/2001 12:14:29 AM
From: jim kelley	Read Replies (2) \| Respond to of 176387

I think the strategy is to gobble up market share, weaken the competition and drive some of them out of the business. Then when the industry growth resumes they will have an even greater cost and competitive market share advantage over the remaining companies. DELL is saying that the return to normal growth cycles will occur in the second quarter of 2002. At this point DELL profits and revenues should really increase rapidly. This sounds like a very good strategy given that they can execute it profitably and any countermeasures by their competition are likely to greater self inflicted losses.

To: rudedog who wrote (165451)	5/19/2001 11:43:47 AM
From: kaka	Read Replies (1) \| Respond to of 176387

Rudedog, Dell grew 8 way's 42%. Those customers came from somewhere, probably would have made purchases form CPQ, IBM, HWP or any other company you would normally associate with 8 way servers. Skeptics will say its from a small base- I couldn't care less....its a beginning, just like DELL's march to number one US servers units shipped had a small beginning. Revenue from it? I'll worry about that later. Dell's overall revenue grew 10%. In this environment, that's also fine with me. Can you imagine the clout associated with continued growth, and even DELL becoming a MAJOR player in the larger servers? Dell thinks, through commoditizing that market, this will happen. I'll worry about revenues form it later. The company is still profitable now. Cheers