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

To: B Hewson who wrote (25279)	12/15/1997 11:34:00 PM
From: Paul van Wijk	Read Replies (1) \| Respond to of 176387

Barbara, Could you give us some more tips & tricks to read between the lines. Paul

To: B Hewson who wrote (25279)	12/16/1997 12:20:00 AM
From: Meathead	Respond to of 176387

ASP's will decline and margins will come under some pressure for everybody, it's inevitable given the current pricing environment, supply chain re-engineering and BTO initiatives but component pricing declines are still helping keep margins healthy. Dell's current direct model would not have the huge price advantage against the other PC mfgr's BTO on a box-by-box basis if the channel executes flawlessly, continuously. However, while the others are rushing to emulate, Dell is rolling out new competetive weapons and will continue to seperate themselves from the pack in terms of value proposition. Keep in mind that there are a lot of logistical problems to be worked out of BTO before it works as well as it can. It's not a total solution to solving the Dell direct headache. These reports are early anecdotal reports from the VAR's who passionately hate Dell sieze any chance to gloat about BTO's advantage. It's good for their business to build positive perceptions about their business model... Dell certainly does. Fact being that for large accounts, no-one really had much of a pricing advantage to begin with so how did BTO win a 3yr 300Million dollar contract for HWP? Think about it. Delta may have bought HP for the soup-to-nuts channel service where Dell has some holes. Dell has advantages over the channel and BTO will only go so far in leveling the playing field. Corporations will buy what they think is the best value and that goes far beyond the basic cost of hardware. For some, the channel is the best solution, for others, direct is the answer. Anyway, as I stated in an earlier post, Dell does'nt win every account but they have a lot of momentum... Compaq is #1 overall in corporate america. These reports are intended to create a buzz. CRN has rarely slanted a story in Dells favor. Resellers either want Dell to join em' or go belly-up and Dell want's neither. MEATHEAD