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: Gabriel008 who wrote (29003)	2/1/1998 10:42:00 PM
From: jim kelley	Respond to of 176387

Gabriel, I was using 356M shares. I modeled the product mix and got a improvement in margins of about .003. Thus the impact of the Asian problem of the COGS may be higher than that but I could not really get any good estimates because I was not sure how much of the cost improvements were passed along in the form of price cuts. Even a .1% improvement in materials costs can have a big effect on desktop profits. I guess we will have to wait and see! The model is very sensitive to any changes in the desktop costs. The model predicted 2625 as the ASP. Thus, there may be little price eroison because of the product mix effects. Right now my best guess is .86. Regards, Jim Kelley