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

To: Jim Patterson who wrote (33583)	3/10/1998 12:27:00 PM
From: SecularBull	Read Replies (1) \| Respond to of 176387

re: >>One last Q, Will Dell sell celeron machines ?<< NO.

To: Jim Patterson who wrote (33583)	3/10/1998 12:41:00 PM
From: Chuzzlewit	Respond to of 176387

Jim, you asked Is it possible that CPQ's inventory actions could cause DELL to make a price change that is not related to component costs ? Of course, this is possible, but it would depend on what machines are likely to be heavily discounted. The sub $1,000 retail market is not likely to have any effect on Dell's pricing, for the simple reason that Dell has no machines designed to compete in this arena. From what I understand, (and I must admit that Compaq's statements leave me somewhat hazy) notebook sales were OK, so I don't think we'll see any effect here. Now, that leaves desktops and servers. This is a very ambiguous area. If Compaq's inventory is largely the older pentium pros and pentium 200s there could be some effect depending on how deep the discounts are. While these machines are lacking in the speed and some of the functionality of the newer machines, they are substitute goods, and some buyers might be enticed to purchase those machines instead of the newer generation, and the magnitude will depend on how heavily the prices will be discounted. My guess is that server pricing will be unaffected, but there could be some pressure on desktop pricing. Much of this will depend on how Compaq chooses to disgorge its inventory. Regards, Paul