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

To: Chuzzlewit who wrote (33260)	3/9/1998 5:09:00 PM
From: D. Swiss	Respond to of 176387

Paul, my comments were a summary of my discussion with Dell's investor relations department. They felt CPQ's problems were mainly in the low end line. Drew

To: Chuzzlewit who wrote (33260)	3/9/1998 6:26:00 PM
From: jim kelley	Read Replies (2) \| Respond to of 176387

Paul, The WSJ article today says that IBM hurt CPQ by reducing prices up to 29% on commercial servers > $10,000. DELL is hurting them where their products lines intersect with prices 10-14% lower than their published prices. IBM apparently has had more success implementing a BTO model. HWP is rumored also to be having more success. I suspect that INTC problems are due to both "channel stuffing" and conversion to the BTO models. Unfortunately, these conversions are only partial BTO models and not as flexible or rich as the GTW and DELL models. No matter how they slice it, they (CPQ, IBM, HWP, Packard Bell, etc) still have a built in inventory problem. Lehman brothers has pointed this fact out in making GTW and DELL recommended buys. Their report has not been updated for CPQ and its latest announcement yet. Regards, Jim Kelley