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

To: mark rose who wrote (26664)	1/1/1998 3:52:00 PM
From: jim kelley	Respond to of 176387

Mark, I do not know what CPQ's margins are but WSJ reported margins on the subzero's as between 3 and 4% at the retail level a few days ago. We do know also that CPQ margins were raised by the acquisition of Tandem. They said so in during their last quarterly report. The Tandem computers are high end, fault tolerant transaction servers and they fetch higher margins than PC's. Jim Kelley

To: mark rose who wrote (26664)	1/1/1998 4:18:00 PM
From: hpeace	Respond to of 176387

mark, the list is at work. but they ranged for 10-22%. the kicker is people usually buy accessories that skew margins. like a 17" monitor that cpq may make 50% on etc. etc. go to cpq thread and I'll post some research that analsyt did based on interviews with cpq. the issue for dell is they need lower cost. the best may to do this in electronics is volume. dellheads don't agree, but, I've worked in purchasing on these contracts.they have not. volumes , volumes , volumes. but, another issue is exchange rates. right now dell is benefiting greatly on exchange rates. you would think that all the major players would have same benefit on exchange rates. not so..your purchasing footprint determines this. I think dell has the edge on this on hp, ibm. and cpq and dell should benefit the same. but this advantage over the other two should prove significant over the next 8 months.