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

To: rudedog who wrote (36165)	3/31/1998 8:51:00 AM
From: jbn3	Read Replies (1) \| Respond to of 176387

Rudedog, Thank you for a very informative post. The new assembly plant due to open in November is intended to produce servers. If they can stay on schedule there and incorporate the same (or better) technologies used in their Metric 12 plant, this company should start doing well next year! DELLish, 3

To: rudedog who wrote (36165)	3/31/1998 12:33:00 PM
From: Chuzzlewit	Respond to of 176387

Rudedog, you quoted your friend as saying They [Dell] don't pay a middleman, they can pass component cost reductions on more quickly, and they don't have costs associated with either inventory carry or 'price protection' to the channel (which he called contra-revenue). These are some of the key elements in Dell's business model and should be borne in mind by every investor in Dell (long or short!). A few additional ones are JIT assembly which eliminates the cost of inventory obsolescence and partnering with large customers like Boeing. No other company can match this model's performance. That's why I believed last summer, much to the consternation of a certain sometime poster on this thread who will remain anonymous, that Dell will surpass Compaq in units shipped in about three to four years. However, since Compaq has chosen to play in the very high volume (theoretically at least) low price arena my projections may need to be redone. Regards, Paul