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

To: hpeace who wrote (26702)	1/1/1998 8:09:00 PM
From: Meathead	Respond to of 176387

Dell only goes where Intel goes. Next year I bet decent entry level prices for the home drop to $599... CPQ is pretty close now at $699 with a model aimed at institutions. I'd wager that next year Dell has a strong sub-zero offering at ~$800 that still isn't trageted at first time buyers. It may account for as much as 10% of Dell's desktop sales by Q4 next year which would be about 7% of total sales. So, the fact that Intel is going there virtually guarantees Dell will be there. Intel's absence today with PentiumII pricing is one of the major reasons Dell isn't. IMO, Intel will be facing some margin pressure next year because of this. So will everybody else... the major PC vendors however will be able to offset this to a great deal with increasing server and workstation sales. So will Intel if they manage it correctly. By 2001, Intel's margins may drop to 45% but they'll have revenues of $100 billion. Yeeoooooow. steve, no need to respond... this isn't directed at you.... I know you don't agree<ggg> MEATHEAD

To: hpeace who wrote (26702)	1/1/1998 10:21:00 PM
From: Jim Patterson	Read Replies (2) \| Respond to of 176387

On DELL and subzero, Steve this would almost seem couter to what you have been saying. You seem to have confused me. Can I take it to mean that DELL wants to be in the low cost PC market? If they do, then why are they not there now, It can't just be the chips ? You or maybe it was Meathead said that there is no money in this market and that DELL was gong after the sophisticated highend market. As willie sutton would say that is where the money is. Won't this eat into ASP's and margins and all that stuff ? I think the Dieties are allready saying that Sub Zero is the savior to PC growth. Atleast for CPQ it is. It was sub Zero that boosted their sales and units so much in the last quarter. Forgive me if I have misunderstood something. Jim