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

To: John Koligman who wrote (171045)	10/1/2002 6:13:00 PM
From: D.J.Smyth	Read Replies (1) \| Respond to of 176387

John. Nokia sold nearly 600 million handsets the past five years. The average selling price was $210 Euro. A large percentage of these handset purchases were subsidized by the telcos. The ASP per handset, in China, isn't much less than Europe, and China claims to have 170 million cellphone users now (about 35 million more than the U.S.). The major reason cellphone prices in China are less than the West is principally due to a lower cost handset which skews the ASP table - namely PHS sales. But, PHS unit sales growth has been outstriping the conventional. So, looking at the cellphone market...if China can afford and create a 170 million cellphone user market within three years, why can't they create but 130 million PC users within the same time frame (that is their goal)? I think the current number of PC users in China has grown to over 30 million. If you add another 100 million PC users to China, you've essentially created a market equivalent to that of Europe. Do we really need 'a billion' PC users to make money? What about adding just another 100 million to the market? Or, doubling the size of the current world market relative to the number of users? Legend doesn't have the manufacturing capacity to fill all this demand. They do sell a lot of $500 systems. But, Dell signed an agreement with the Chinese Govt. to sell thousands of $550 systems too.