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

To: calgal who wrote (165769)	6/9/2001 7:01:04 PM
From: calgal	Respond to of 176387

June 8, 2001 Japan Electronics Makers Cut Output Of Memory Chips Amid Slack Demand public.wsj.com

To: calgal who wrote (165769)	6/9/2001 7:07:12 PM
From: calgal	Respond to of 176387

U.S. tech stocks rise in Europe led by Intel cbs.marketwatch.com

To: calgal who wrote (165769)	6/10/2001 3:20:03 PM
From: t2	Read Replies (1) \| Respond to of 176387

Dell's price war strategy seems pretty clear. Leave the business to very few large PC companies. In the end, this strategy may help its key competitors like Compaq and Gateway as well. The idea is to force as many companies out of business (or consolodation) ahead of the big upgrade cycle coming late this year with Windows XP. I read somewhere that even being number one does not give a company large enough percentage of the PC market and that is what the large PC vendors want. There is little incentive to go and buy the no-name brand at a local computer store anymore...and that must be a part of Dell's plan. I see this strategy as very good long term one. Dell probably did not need to keep cutting prices aggressively just to get share from Compaq...they may have been more interested in taking away business from the emachine types of companies...and also to send the message that new entrants into the business are going to have a very hard time...a strategy to limit new competition. So when WindowsXP launches, the big players take in the profits as they get a larger share of the overall market. In the meantime, they are getting leaner and leaner. Seems like a pretty good strategy to me.

To: calgal who wrote (165769)	6/11/2001 7:11:21 PM
From: kemble s. matter	Read Replies (1) \| Respond to of 176387

Leigh, Hi!! RE: siliconinvestor.com First, thanks for the link...Excellent article...As a matter of fact some of the lines in this remind me of the tour of Parmer last year...We were told of this new method of calculation costs from suppliers and what it would do the competition...Michael had also discussed this in that long Jan.1 2000 memo to the employees...Looks like that squeeze is on...Wow, this was a great article...For once someone is writing about DELL and what they are capable of doing with the direct method...The advantages listed here are written in a simple manner and someone is finally making it a point to tell people why DELL is unbeatable...Thanks again..Really enjoyed this one... RE: Direct sales route Dell's methods have always differed. It builds its machines to order and shuns sales through independent dealers. By selling directly via the Internet, catalogs and the telephone, it maintains direct contact with customers and can regularly gauge their sensitivity to price changes. It also routinely polls customers on their willingness to pay for new technologies, such as whether they would substitute flat-panel displays for bulkier monitors. More recently, suppliers and others close to Dell say, the company has developed a cost-forecasting system that underpins its fluid pricing. The company won't discuss in detail how it sets prices, beyond saying that its strategy has cut into its rivals' business. "Contrary to what most companies say, it's not necessary to be price competitive," says James T. Vanderslice, Dell's co-president. "It's most necessary to be cost-competitive." And Leigh the word spreads fast among the potential customers...I can recall that once our school district had signed the deal with DELL that they gave us back $23,000 since they were that much under the other bids...Let me tell ya...There were quite a few more school districts just in our area that immediately went to DELL...Even our bus drivers were telling me that schools had boxes upon boxes of DELL's that maintenance had to haul in from deliveries because "the deals were far better than the others"...Many of these are possibly up for upgrades now...I know we're looking into portables and the new line from the cable is being dug and covered this past week... Best, Kemble