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

To: Fangorn who wrote (35061)	3/20/1998 3:35:00 PM
From: rudedog	Read Replies (1) \| Respond to of 176387

Increased volume in response to lower price assumes an elastic market, the one thing we don't have with today's saturated conditions. Dell's best play might be to NOT pass the savings along, that way the additional margins help to maintain earnings in the face of lower than predicted unit growth. Would they lose share? Not if you believe the bulls on this thread...

To: Fangorn who wrote (35061)	3/20/1998 3:56:00 PM
From: Jim Patterson	Read Replies (2) \| Respond to of 176387

re: <<Jim, You changed my assumptions to make your point. If Dell passes the 200 dollars through they will still make 140 profit on the cpu so profit margin on that part goes to 28%. >> I changed nothing. If you were right, then in todays world of continuely declining component pricing, DELL's margins would be rising significantly. That is not the case. Therefore some one has an unfound error in their logic. Jim PS, no offence intended.