To: Kirk © who wrote (44218 ) 1/8/1998 12:03:00 PM From: Kirk © Read Replies (2) | Respond to of 186894
It occured to me that many rush to the conclusion that Intel and the big PC makers will all take it in the shorts with the $800 PC. I don't think so. With higher volumes, chip prices are lower as you clearly explain ..... Ha! I might have been right. 8) Check this out -> Dell Cuts PC Prices, Cites Asia Crisis yahoo.com ROCK, Texas (Reuters) - Dell Computer Corp. said Thursday it would reduce prices on selected desktop personal computers by up to 15 percent as a result of cost benefits it is reaping from the Asian economic crisis. Several major personal computer makers have announced price cuts this week, but Dell was the first to specifically cite lower component costs due to the ongoing economic crisis in Asia as a factor in its pricing move. All the cuts involved models built around Intel Corp.'s Pentium processors with MMX technology and Pentium II processors. Intel recently cut prices on its Pentium II line. Dell said because it builds all its personal computers to order, the company can quickly factor changes in component costs to its pricing. In a statement outlining the price cuts, Dell said the move was "attributable at least in part to weakness in the Asian economy." Dell spokesman Rick Scott said the company was unable to quantify how large a part the Asia crisis played in the lower component costs. Costs for various PC parts, especially memory, have fallen steadily over the past year. "In recent weeks, we have seen a steeper decline in some component costs," Scott said. "We believe some of that relates back to Asia." Dell sells few of its personal computers in Asia, making the company one that appears to be benefitting, if to an uncertain degree, from the situation in the region. Dell said the price cuts ranged from 2 percent to 15 percent on selected OptiPlex corporate desktop models. Dell also cut prices on some single-processor WorkStation 400 units. The stock of Round Rock, Texas-based Dell was up 1 at 87 1/4 Thursday on Nasdaq. regards Kirk out New Article at: suite101.com