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

To: Jim Patterson who wrote (33623)	3/10/1998 3:36:00 PM
From: SecularBull	Read Replies (1) \| Respond to of 176387

DELL doesn't take components into "inventory" (see assembly line), until the units are sold to buyers. One week old oil is irrelevant. INTC, Iomega, Sony, 3Com, etc. are all bearing the brunt for handling DELL's "inventory".

To: Jim Patterson who wrote (33623)	3/10/1998 5:06:00 PM
From: Chuzzlewit	Respond to of 176387

Jim, I think the real point is that one year old oil is just as functional as oil pumped today. But a one year old CPU isn't. Now, that's a double whammy, because not only are you looking at falling prices as a continuing trend in technology, but you are also looking at falling costs as a result of the Asian economic problems. Now you add a second layer of risk -- obsolescence -- on top of the price risks, and you have a recipe for a disastrous quarter. No amount of aggressive price cutting eliminates the problem of obsolescence. Slide rules anyone (although I still have and occasionally use my Versalog)? Regards, Paul