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

To: Venkie who wrote (34576)	3/16/1998 5:46:00 PM
From: Chuzzlewit	Read Replies (2) \| Respond to of 176387

Venkie, why all the cheering? This came from the MUEI press release: "In accordance with its expectation as announced in February 1998, the Company incurred significant losses in its PC operation in the second quarter of fiscal 1998. Selling prices for the Company's notebook products in the second quarter of fiscal 1998 decreased to a level below the Company's cost. In addition, the Company wrote down the value of notebook PC inventories which the Company purchased as a result of an overly aggressive forecast. In the same announcement, the Company also disclosed that it had taken several actions to realign its operations to more efficiently and better serve its core markets. These actions included a consolidation of domestic and international operations and a reassignment of approximately 10% of its workforce to the Company's parent." If you look at their statement you would have discovered that the PC segment had a negative profit margin. It looks to me as if Dell is exerting severe pricing pressure on the second-tier players. They are going to consolidate or die. Regards, Paul