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

To: Jason W. France who wrote (34469)	3/16/1998 1:07:00 AM
From: Chuzzlewit	Read Replies (1) \| Respond to of 176387

Jason, only the first one makes any sense. The second is nonsense, as evidenced by Compaq's dismal failure. Gateway started out by trying to emulate Dell and has gotten itself into periodic inventory troubles. The third point is proof by blatant assertion. The fact is that Dell is the only manufacturer that can take full advantage of the drop in component prices because it is the only major box maker without a bloated inventory. Only would the most die-hard bear make the inane argument that falling costs spell trouble! Now if they would rephrase the argument to say that Dell lacks pricing power, that would at least make some sense, in spite of the fact that there is no evidence to support that. Quite the contrary. What we have is the demonstration that Dell, by virtue of its lower cost structure, is able to dictate market pricing that not only gives it an ever-accelerating market share, but also ensures healthy profits while its competitors merely break-even. Regards, Paul