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

To: LemurHouse who wrote (37479)	4/10/1998 4:12:00 PM
From: Chuzzlewit	Read Replies (2) \| Respond to of 176387

Andrew, I disagree, and the reason I disagree has to do with Dell's marketing, and consumer behavior. It has been argued persuasively that first-time buyers are the primary consumers of inexpensive PCs. I believe that such buyers are much less likely to purchase mail-order. If that's true, it would imply that Dell would need to develop distribution channels. Additionally, Meathead and Jim Kelley have presented a substantial body of data that leads me to believe that the profit margin in these machines is minuscule. Therefore, the only reason to pursue such a strategy would be gain market share, but that only makes sense if there is brand loyalty among retail customers and you would hope that the following machine would be a step up. But here again, there is a lot of data refuting that notion. Regards, Paul

To: LemurHouse who wrote (37479)	4/10/1998 6:01:00 PM
From: N. David Lessani	Respond to of 176387

I agree with you. I see common sense are coming back to this thread. Not all of us putting our head in the sand. 50% of market share of any market is important. The problem is whenever you ignore it , it would be hard to get back market for long time. Your competition will have huge edge over you. Dell customer base will shrink.

To: LemurHouse who wrote (37479)	4/10/1998 6:43:00 PM
From: Dan B.	Respond to of 176387

<<low end P.C.'s or not, I don't see any immediate threats to Dell's continuing to increase its market share, earnings, and price>> Me either. Furthermore, I don't think, judging from his recent statements, that Mr.Dell is truly ignoring the Low priced Market. And I would point out that everyone DOES have a P.C. collecting dust in their closet- and I think that implies that computers were not just a fad as the DEQ man suggested. On the other hand it's relevant... Until Windows stops crashing, the price comes way down, and the quality/content through the net becomes something akin to 50,000 T.V. channels with whatever you can imagine on whenever you want it- I think there will remain a large segment of average Joe's who just aren't gonna want to buy a "I know it'll need to be replaced soon- so I can access the latest..." kind of machine, even if it's cheap. I've got a buddy who owns a Radio Shack 286 with a 20 meg hard drive he's never filled up. He says "sure it works, all those Phone No.'s are still in there." I'm on the net now and he's inclined to call me "lawnmower man" and laugh at what's liable to happen to me. I listen to Real Network programming, etc. and he says the Stereo sounds better. Hmmmm....but I could be wrong... I'm sure gonna tell 'em I'M havin' fun.... .