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

To: Thomas J. Smith who wrote (26623)	12/31/1997 6:45:00 PM
From: hpeace	Respond to of 176387

thomas, I'm more aware of pricing since I have post on this thread 12 months ago saying that we have this pricing in 1997. I posted the feb 97 800 pc before anyone mentioned it and back when pc's were 2k a piece and maybe as early as sept 1996. I also, said that a $700 p166 and $1200 p200 and $1400 p233 was a 1997 price. BUT, PRICES DROPPED MORE THAN THIS FROM 1996 TO 1997 AND CPQ MARGINS WENT FROM 22 TO 27.5%....25% increase YOU CAN PRESENT NO PROOF WHAT SO EVER THAT CPQ MARGINS CRASH....NONE. So, can you present any proof that margins are falling when the public 10Q's from cpq say they are increasing and statements from cpq's CFO says margins will continue to go up. Since , I'm in the CPQ bto program I can ensure you that margins are more complex than just the price of the pc. try factoring in buying some of the components 50% cheaper from September 97 prices. then drop the price of the pc by 25%.... will that drop margins?????? Plus, as a general rule cpq is on the leading edge of the cost to price bubble. What I mean by that is. Cpq has been collecting extra money on pc's for 3-6 months before they actually are froce to drop prices bec. the competition finally caught up. So, for 1 to 2 qtrs cpq made a bunch of extra profit... yep , that is the way it works. the good pc mfg'ers don't drop the price as soon as cost drops. So, the question is ....where is your proof that margins decline.. I'll take news articles or anything... I think it's just your opinion..that's okay, but, don't say you have facts for the opinion. the only issue is "cpq is going to have such a blow out 4th qtr is will the 1q98 going to be able to sequesntially match it" THAT IS THE ONLY QUESTION.... plus, cpq may keep margins at 27.5% with price drops.