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

To: XoFruitCake who wrote (34685)	3/17/1998 2:19:00 PM
From: Boplicity	Read Replies (2) \| Respond to of 176387

mw re: I will call this a mature industry... How can you say this? Totally unfounded and just plan wrong. When PC are like TVs in house holds, then you can say the PC biz. is mature. Greg

To: XoFruitCake who wrote (34685)	3/17/1998 9:05:00 PM
From: Jason W. France	Read Replies (2) \| Respond to of 176387

Man Wah Ma I wouldn't belabor this point but IMO this is a very important topic for all dell shareholders The avg current margins in the server business is around 50-60% (thanks to those fat margins from CPQ which you can get away with if you own 30-50% share of the market) According to IDC Dell has about 10-15% share in the U.S. server biz and way less abroad. According to dell financials they avg 23% margins across the entire business (i,e, all products) Hypothetically if Dell was able to double their share in the server business by reducing the overall market margin in that segment to say 23%, then this is great news for Dell shareholders (i.e. all upside earnings) and bad news for CPQ shareholders (all downside earnings). Looking at the news from HP and CPQ re: server pricing and tracking Dell;s growth in this mkt segment, it looks like Dell's little plan is working. Aside from the revenues and margins with these incremental servers, think about all those Dell PCs and such that will go along with these incremental servers as far as servers, and Dell and CPQ, this is worse then a zero sum game for CPQ. its a zero sum (and then some) game. Don't misunderstand me, your logic and thought process is excellent, keep it coming. Jason