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Technology Stocks : DELL Bear Thread -- Ignore unavailable to you. Want to Upgrade?

To: Ally who wrote (193)	3/17/1998 7:15:00 PM
From: Jorge	Respond to of 2578

<<Dell's direct sale box assembly methodology already has a good 2 year run. I'm surprised that competitors have not caught on sooner and climbed on this wagon of 50% growth. But my bet is that it won't be too long more when this will happen.>> I read in an article in Investors Business Daily, on their tech page just last week, the speculation No Other PC maker may EVER be able to match DELL's model (except Gateway, who isn't executing like DELL)...Reasons were varied, and of course speculative...The article said IBM and CPQ both had even entertained the idea in the last year or so of going almost entirely direct but knew it would alienate a lot of established distribution and channel partners...IBM actually took discussions a step farther than CPQ and offended some of their partners so they abandoned the idea........No inventory is the key here....Even CPQ, and anyone else who may sell direct, is going to have channel inventory SOMEWHERE which will drag on their performance compared to DELL....The article said DELL is going to be a very tough act to repeat.......And yes, maybe the growth in PC sales is slowing, but there should still be a strong market for the next 2-3 years I would think.........George