Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Meathead who wrote (26698)	1/1/1998 7:35:00 PM
From: jim kelley	Respond to of 176387

Meathead, The thanks should go to you. You have been doing a lot more than your fair share keeping the thread honest. Look at Patterson's profile and you'll see that he has a disclaimer on his making misleading remarks on the thread. Is he a Pied piper? From your numbers (12.5%), it looks like the subzero could cut into overall PC after tax profit by as much as 1/2 % . In the case of CPQ, HWP and IBM that profit margin eroison may be masked by the higher margins in their high end products. Anyway, I would not be suprised to see their margins dropping this quarter. I think they will beat overall profit expectations however. Regards, Jim kelley

To: Meathead who wrote (26698)	1/1/1998 10:32:00 PM
From: Gold Beach	Read Replies (2) \| Respond to of 176387

MEATHEAD: In regards to your reply #26700 31%(Retail) x 40% + 69%(Business) x 0% = Total 12.4% + 0% = 12.4% There is an unknown percentages of businesses that are also buying sub-zero PCs, especially for the 80% of employees making charts, tables, memos, etc. These sub-zeros are quite a step up for all the 486's that are still in use. Also, just adding a couple hundred dollars to a 486/66 allows one to add additional RAM, etc. and not even have to upgrade to a sub-zero for yet another year. My point is that the 12.4% does not take into account the business sub-zeros. I do not know what percentage that would be but I do not think it is small and over time I think it will grow in tandem with the retail sub-zero percentages. Quite a few corporations have corporate accounts with retail outlets. I agree that businesses need to also have state of the art computers to perform major functions but this would only be 10-20% from my experience (200-400 PCs for a corporation with 2000+ employees). Many years ago when businesses were first buying PCs everybody needed a 286 just to run the software. But now only a small percentage of business PCs need to be state-of-the-art. Each year we have to justify our expenditures. It is easy to make a case for high powered PCs to run major functions but hardly worth the effort trying to justify them for making charts, graphs, letters, or for running e-Mail or EXCHANGE or reading company procedures, etc. The above has been my work experience plus talking to employeees at other corporations. I have mentioned some of this before in a previous post but thought it appropriate to reiterate it here.