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

To: jim kelley who wrote (33417)	3/9/1998 6:34:00 PM
From: Chuzzlewit	Read Replies (1) \| Respond to of 176387

Jim, Thanks for the update. I was unaware that IBM had been causing Compaq pain! This experience should make people who claim there are no barriers to entry sit up and take notice! Perhaps Dell should set up a consulting arm to help other businesses (not computer box makers) implement JIT and BTO manufacturing systems. Regards, Paul

To: jim kelley who wrote (33417)	3/9/1998 6:39:00 PM
From: Paul Merriwether	Read Replies (1) \| Respond to of 176387

Jim According to the WSJ article that you referred to: << Compaq is imperiled by its own mistakes, its reliance on servers as the top source of profits and its continuing struggle to change fundamental production and distribution methods. >> Which happens to be where Dell makes its big $$$s as well. <<Notebook computers, another high-profit product, are also coming under greater pricing pressure. Several manufacturers introduced fully configured models at $2,000, several hundred dollars less than has been normal for entry-level notebooks >> <<Notebook computers, another high-profit product, are also coming under greater pricing pressure. Several manufacturers introduced fully configured models at $2,000, several hundred dollars less than has been normal for entry-level notebooks. Toshiba, the leading producer, has been cutting prices to fend off IBM and Compaq. Meanwhile, IBM has quietly increased some of its dealer incentives. "There's no safe bastion anymore," said Ashok Kumar, analyst at Loewenbaum & Co., an investment firm in Austin, Texas. "People used to be able to say their servers and notebooks would offset the low margins in desktops.">> I don't understand why Dell will come out smelling all sweet, with so much blood and gore on the street? As I see it, this is NOT a low-end problem but rather a problem across the board(and if WSJ article is to be believed, the high margin stuff stinks the worst!). Price war won't help any of the boxmakers, and seems like that's exactly what's going to happen purty soon(since no one would want to give up market share). If I were a "long-termer" I would ATLEAST write some covered calls and put a hold on pc purchases till the bigboys duke it out!