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

To: Chuzzlewit who wrote (24927)	12/12/1997 1:05:00 PM
From: jbn3	Respond to of 176387

Paul, Talking Head on CNBC (1258 EST) just noted that the Microsoft ruling may give the computer makers a lot more power in negotiations with MSFT (and/or Netscape), resulting in lower Operating System costs. Don't want to sound too much like a cheerleader, but DELL (and CPQ) sure look good to me. PS. I notice that many posters who proclaim that "Yes, {Company Name} can make a large profit margin on sub-1000 machines." neglect to calculate in the shipping, the labor, the factory overhead, admin expenses, tax, etc. They point out that "anyone can go down and get the components and build one for $x." But 'anyone' doesn't have those extra costs. Thanks for keeping our vision unclouded. 3

To: Chuzzlewit who wrote (24927)	12/12/1997 1:18:00 PM
From: Meathead	Read Replies (2) \| Respond to of 176387

Bravo Paul and Jim! You guys are much more in tune and closer to the true cost structure of a PC. I love it when guys like ed post their kindergarden analysis. By the way, looks like ed is on the Compaq thread feeling sorry for you guys cause your so ignorant and always being misled by analysts. MEATHEAD

To: Chuzzlewit who wrote (24927)	12/12/1997 1:20:00 PM
From: ed	Read Replies (2) \| Respond to of 176387

Thank you for the analysis. Let's assume that the distributors make 20%, and retailers make 25% (those figures are actually too high), and 25% for shipping(actually, products are shipped directly from the contractors to wherever directed by CPQ). The $579 cost is not real, because the cost of cd-rom, and HD are well below $100 per piece, so from there you will see that the profit margin of sub $1000 pcs are much higher than you calculation of 4% !!!!! Good Analysis !!!