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

To: SuperSonics who wrote (32373)	3/5/1998 11:19:00 AM
From: Chuzzlewit	Read Replies (2) \| Respond to of 176388

I disagree. Channel stuffing is the result of an ill conceived supply strategy, not the cause of a price war. Compaq will endeavor to get its inventory back in balance and fine tune its delivery system. This is probably a one to two quarter problem. Regards, Paul

To: SuperSonics who wrote (32373)	3/5/1998 11:44:00 AM
From: SecularBull	Respond to of 176388

MUST READ: NO PRICE WAR. DELL's customers want the latest, greatest technology. CPQ's channel inventory is ALREADY approaching dinosaur status as it sits at CompUSA. DELL's channel is what DELL is shipping directly to customers today-->233-333Mhz Intel Pentium II computers. CPQ's channel is filled with <233Mhz computers that are (now) the sub-$1,000 PC. The real question is what happens to the slower PCs which were formerly known as the sub-$1,000 PC. Anybody who was in this sub-$1,000 market before the mid-range performance channel got stuffed (and became the sub-$1,000 PC) is in a world of hurt. Why buy the lower performance computer for $1,000 when you can buy the channel stuffer, mid range performance computers for a little more? DELL's not interested in having customers who do not need power computing. There's no margin in it. Now that DELL's not mired down in the $1,000 PC, it won't be hurt in that bloodbath. Everyone else, including Gateway (peddling to the non-power user consumers), are in a very negative position. I wouldn't touch them. I see this as a buying opportunity for the new market cap leader in PCs- DELL.