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

To: kaka who wrote (172794)	5/15/2003 4:31:54 PM
From: LemurHouse	Read Replies (2) \| Respond to of 176387

Lets wait for the CC, but at first blush this looks very strong indeed. Model continues to perorm exceptionally well, margins and market share improving. Not to quibble with Kemble, who earlier stated that taking market share is the only thing that matters, but its taking that share profitably that matters. They are indeed doing this at an astonishing rate. When the economic situation improves -- as it surely will -- profits should expand most dramatically, I would think. Hopefully the multiple will expand as well. Afterhours drop is just noise IMO. Great report, all things considered. Hopefully the CC will support initial look.

To: kaka who wrote (172794)	5/15/2003 4:37:24 PM
From: William F. Wager, Jr.	Read Replies (2) \| Respond to of 176387

MSD CNBC interview notes... * 29% unit growth * will grow faster than the industry going forward * gaining market share, 26%, industry -6% * China growth +67% and the 4th largest market * overseas profit doubled YOY * no SARS impact, 1 employee in Taiwan may have symptoms * stock options? has reduced the number. Key execs will get cash bonus tied to performance. No impact on earnings * profitability improving * elimination of tax on dividends? In favor of, if enacted will probably begin issuing dividends

To: kaka who wrote (172794)	5/15/2003 8:51:27 PM
From: William F. Wager, Jr.	Read Replies (1) \| Respond to of 176387

PC Makers Race To Stay Ahead Of Falling Prices,ProtectProfit BY PATRICK SEITZ INVESTOR'S BUSINESS DAILY Personal computer unit shipments are rising again, but PC market revenue continues to shrivel. At their peak in 2000, worldwide sales of desktop and notebook PCs totaled $201.8 billion. In 2001, sales fell 14% to $172.6 billion and last year dipped another 10% to $154.7 billion, says market tracker International Data Corp. Falling component costs and stiffer competition among PC makers fueled the price declines in 2001. Component prices stabilized last year, but price competition remains strong. And changing buying habits are a big factor in the decline of PC prices, analysts say. Shoppers lately have been more interested in lower-priced PCs. They might not have the fastest processors, best graphics cards or biggest hard-disk drives, but their features are more than enough to meet buyers' needs. What does this mean for computer makers? More price competition and pressure on profits. PC makers are fine-tuning their businesses to wring more profit from lower-priced PCs. They're also building more high-end specialty PCs for niche markets. And they're bundling services and other products with PCs for a more profitable sale. Quick To Adjust Dell Computer (DELL) has been faster to adjust to pricing trends than its rivals, analysts say. It's used its direct sales, build-to-order business model to better control costs and undercut rivals during the downturn, analysts say. "Dell stays ahead of the game by driving cost and price (reductions) at the same time, to squeeze the other players," said IDC analyst Roger Kay. "They've pretty much got that model clocked." About 18 months ago, Dell launched an effort to cut production costs. Since then, it's trimmed $1 billion in costs, much of it from manufacturing, says Michael Farello, a vice president in Dell's Americas unit. That effort let Dell boost its operating margin — operating income divided by sales — to 8.4% for its fiscal fourth quarter ended Jan. 31 from 7.4% a year earlier, even as prices fell. Farello makes another point. Just because PC prices are falling, he says, doesn't mean Dell is getting less revenue from its business customers. Many companies buying cheaper PCs spend the savings on other Dell products, such as servers and storage computers. "In some ways, we actually view (PC price) reduction more as an opportunity," he claimed. The PC market is mature and saturated. Still, there are business opportunities for vendors, says Steve Baker, an analyst with retail tracker NPD Techworld. For instance, privately held Alienware Corp. succeeds in selling high-end, custom-built PCs for computer gamers, Baker says. Another privately held company, eMachines Inc., has found a profitable niche selling low-priced desktop PCs at retail, he says. In February, 70% of PCs sold at retail went for under $800. EMachines' PCs start at $399. The firm keeps prices down by using lower-cost components and not loading its PCs with extra features. Looking For Value Consumers are looking for "good-enough value," Baker said. "The mass of consumers don't see any value in going from a 2.2 gigahertz (processor) to a 2.8 GHz (processor), or they don't see why they need an 80-gigabyte hard drive when 40 gigs seems like plenty." At the same time, high-end specialty PCs are selling well, says Baker, just not in large volumes. Hewlett-Packard (HPQ) has succeeded selling pricey machines such as its Media Center and Tablet PCs to counter the trend toward commodity PCs. HP also has been working to sell more of the low-priced PCs. For instance, HP this month unveiled a line of PCs starting at $599 for small and midsize businesses. The PCs, sold under the Compaq Evo brand, come with a small and midsize business edition of Microsoft's (MSFT) Office XP software. "Our pricing is the most competitive it's been in years," said John Thompson, vice president and general manager of HP's Personal Systems Group. HP has been able to cut PC prices by passing along savings it realized from its merger a year ago with Compaq Computer, he says. The combined firm has saved money in such areas as supply chain management, inventory control and material costs, he says. HP has been able to offset some PC price declines by bundling services and products like handheld computers in large sales to corporate customers, Thompson says. One factor offsetting the competitive pressure is the fact that price erosion has been more dramatic in the U.S. than abroad. The average desktop PC last year cost $992 in the U.S. and $1,027 worldwide, says IDC. The average notebook computer cost $1,474 in the U.S. and $1,639 worldwide. Since 1999, the average selling price for a desktop computer in the U.S. has fallen 34% vs. 28% worldwide. Worldwide PC unit shipments fell 4.1% in 2001 vs. 2000 — the first-ever annual decrease in unit shipments. Global PC shipments rose 1.4% last year. The gains continued with a 2.1 % first-quarter rise, IDC reported.

To: kaka who wrote (172794)	5/15/2003 9:21:13 PM
From: kemble s. matter	Read Replies (1) \| Respond to of 176387

Gary, Hi!! Well, you know I just sit back here and wait for this guy to talk...It's the only thing that really has ever mattered to me...So, I suppose you can imagine how I felt when I came home tonight and read this thread...And, now that I'm down to this release posted by you...I have to comment on these lines from Michael: Dell, Dell's chairman of the board and chief executive officer. "They're recognizing the performance and reliability of standards-based enterprise computing, and choosing such servers and storage products at an accelerating rate. "Dell's unique ability is innovating, integrating and delivering technology with the best possible value, and our execution in those areas has never been better." WOW!!! That's all that matters for the second quarter... "ACCELERATING RATE...and EXECUTION IN THOSE AREAS HAS NEVER BEEN BETTER." Best, Kemble