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

To: Chuzzlewit who wrote (20901)	11/8/1997 2:41:00 PM
From: jim kelley	Read Replies (1) \| Respond to of 176387

Paul, I checked CPQs 10-Q and it attributed their increase in gross margin to the sales of higher margin products (emterprise products and options) rather than any inventory adjustments. They also mentioned improved operating efficiency. I take the last one to mean improved inventory turns and DSO. I agree. I think the assertion that CPQ is the low cost producer due to lower component costs is questionable at best. Their product mix is quite different than DELL's. They have the Tandem offering in the enterprise market along with the proliant servers. These require different components than say the desktops or notebooks they make. Even their notebook offering uses many different components. DELL does not have a Tandem offering. DELL is also the number 1 supplier of desktops to corporate america. It could be argued that it has an advantage over CPQ for the these component costs. Regards, Jim

To: Chuzzlewit who wrote (20901)	11/8/1997 3:55:00 PM
From: hpeace	Read Replies (1) \| Respond to of 176387

paul, buy any pc mfg'ing cost research report and you have your answer to is cpq the lowest cost produce. I cut and paste allot of stuff. but the independent research reports..I want do that with those reports.buy some research and you have your answer. buy as many as you want. the answers the same. remember...dell has to buy SMT..cpq has some of the best SMT in the world. so the boards dell buys are at premy cost now since smt is in short supply. cpq's smt is allot better than jabil, selctron and you name it..even intel. see their plants if you want....huge plants but they are so automated that they don't have allot of people. the systems are integrated also which means nil data entry and the invenotry accuracy is some of the best in SMT history.no physicals for decade and 1/2.