Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Meathead who wrote (37677)	4/14/1998 11:01:00 AM
From: Jim Patterson	Read Replies (1) \| Respond to of 176387

re: We can pick nits about ZIP drives, DVD, subwoofers, AGP capability etc. Dell has a pricing advantage that is structured in real time. If Dell and CPQ were to design the exact same box and build it at the same time, CPQ's COGS would be lower due to their component cost advantage from larger quantities and bulkier orders not associated with JIT. ....... Meathead, CPQ just started a price war. They have a huge inventory problem and after looking at the boxes CPQ is pushing, the problem seems to be more in the PII area than the low end. Some of DELLs boxes now cost more than CPQs. Stop talking about how DELL is better than CPQ and start looking at how the Pricing actions of CPQ and I would expect IBM and HWP(now the most expensive) to not just stand idily by and just watch CPQ. Why don't we start to focus on how these pricing action could potential affect DELLs expectations. I think there should be some concern about these pricing actions. DLJ thinks so too. I am curious to here how DELL will compete with the PRICE actions. It does not matter how much CPQ will loose dollar wise. what matters is how the new Pricing landscape can or will affect DELL. Jim