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

To: David Harker who wrote (35093)3/20/1998 4:47:00 PM
From: Jim Patterson  Read Replies (2) | Respond to of 176387
 
OK, One last one.
<<<Well, the math sure looks correct to me. If Dell choose to
preserve "$ per unit" profit, yes, their margins would rise.
You have studied Dell's margins, and lately they have been
holding constant. That would imply that in the above example,
Dell now makes less $ per unit, but chooses to preserve the
20% margin. That is their choice, either way. Big deal.>>>

I think it is a big deal.
Especialy when we are talking about the highest end of their product line. The area where they make the highest margins (we agree to this).

It is one thing to make less on a $1500 PC that you don't make much on to begin with.
I think it is more important when you are not going to make as much on the high end, where most of your profits come from.

JMHO
Jim



To: David Harker who wrote (35093)3/20/1998 4:58:00 PM
From: rudedog  Read Replies (1) | Respond to of 176387
 
David - Dell started this way from day one, a huge advantage
not quite right, Dell did this conversion in the early 1990s and got to roughly their current model in 1992. Took a pretty big hit in the stock price while they were doing it too but the gamble paid off big. So at least one company was able to pull that engine swap and not lose too many laps in the race.


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