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Technology Stocks : Intel Corporation (INTC) -- Ignore unavailable to you. Want to Upgrade?

To: Dan3 who wrote (167466)	7/6/2002 11:10:37 AM
From: The Duke of URL©	Respond to of 186894

Nearly all of Dell's service is contracted out, and that most definitely includes service for servers. Dell would simply add the Intel configured and assembled servers to the list of things they expect their service contractors to support. And the service contractors would adjust their fees (to which Dell adds an overhead charge) accordingly. At the risk of seeming prescient (or maybe, conspiratorial) this is what I see to be the essence of the problem. Two years ago, Dell cut loose UIS and formed a new alliance with IBM for service. My absolute guess is that there is no money passed. Ibm gives the service and Dell sells what it can of the servers. In the short run, this is a stop gap for Dell. In the long run, it would seem to be absolutely devastating to Dell's model. The natural course of that relationship would make Dell everything they did not wish to be and would make ANYONE else, the "fast follower" which Dell wishes to be in their business plan. What I am suggesting, but do not really know, is that the failure of Dell to be offering anything but the old Itanium 1 server at this time, is a Dell problem not an Intel problem, as you suggest.