Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: kaka who wrote (172362)	2/6/2003 6:06:59 PM
From: kaka	Respond to of 176387

Dell COO Rollins Sees Tough Year for Technology PALO ALTO, Calif. (Reuters) - Dell Computer Corp. (DELL.O) Chief Operating Officer Kevin Rollins said on Thursday that corporate spending on technology will be soft this year due to the weak economy and concerns about a potential U.S. war with Iraq. "What we have felt all along is that much like 2002, 2003 will be a fairly difficult year due to the economy more than anything else," Rollins told Reuters in an interview ahead of a speech at the Churchill Club, a civic organization. "The overhang with the potential war makes people skittish and nervous," he said. "Once the economy rebounds, spending on information technology will not rise sharply or aggressively. When the war is resolved -- however it is resolved -- I don't think you're then going to see a massive resurgence in IT spending," Rollins said. "It's all going to be fairly muted." Austin, Texas-based Dell, the No. 2 personal computer maker, has increased market share amid stagnant demand by keeping costs low and using its direct sales system to cut prices. The company reports earnings for its fourth fiscal quarter ended January on Feb. 13. Rollins declined to discuss the results. Rollins said that Dell will continue to be very aggressive on pricing this year due to declines in the cost of components. Dell keeps its inventory low by making machines to order, which enables it to benefit by passing on falling prices of computer components like microchips to customers. Dell said the company remains interested in acquiring niche computer services companies, but is not looking at doing a large acquisition or a certain number of purchases. "I think it's highly unlikely to impossible that you'll see us doing anything like PWC," Rollins said. International Business Machines Corp. (IBM.N) bought PriceWaterhouseCoopers Consulting last year to help build out its services business for $3.5 billion. Rollins said Dell's data storage business will continue to grow. Dell has a deal with EMC Corp. (EMC.N) in which it sells EMC data storage machines. More recently, it agreed to license some EMC systems and build them itself. The growing ties between the companies doesn't mean that the partnership will result in Dell buying EMC, Rollins said. "They want to be independent. We're not interested in buying them," he said.