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


To: SecularBull who wrote (35071)3/20/1998 4:10:00 PM
From: Jim Patterson  Read Replies (3) | Respond to of 176387
 
re: <<Why can't DELL preserve dollar-profit (bump margins up)?>>

I am not saying that DELL can not do this.
What I am saying is that Dell DOES NOT DO this.
For the past year, net margins have been very stable.
If they did what you imply, then Net margins should be rising overall. You know $500 profit on 2300 is a greater margin than $500 on 2500.

Please show me evidence that DELL realises increased margins every time INTC cuts prices, or any other component for that matter.
They may do this for a short period, but not long enough to create a visible trend upward.

Net Margins have increased as quarterly sales went from >2 Billion to <2.4 Billion, but have made no progress since then, about 1 year.
In the past year there have been many price cuts by INTC and others for DELL to take advantage of. How come there is no upward trend ?

Jim