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

To: Eddie Kim who wrote (37754)	4/14/1998 9:29:00 PM
From: Marc Newman	Respond to of 176387

Eddie, I just dropped into this forum to see what the Dell bulls see for tomorrow's market due to the Intel report and your post was the first one I came to. However, I've enjoyed your posts on the Novell thread for a year and also want to say something about the sub-$1000 market. I find it interesting that Apple and Dell are both up huge for the year, and not the least of which reasons is because these companies have been able to sustain their gross margins by not being in the sub-$1000 market. Apple has proven that they don't know how to sell a cheap box to consumers and given their model, Dell probably wouldn't do as well with them as they do with the more high-end boxes. I think that this limited exposure to the cheap boxes is why both these companies should have good earnings for the rest of the year. That's the kind of "certainty" I'm looking for in this uncertain, overpriced market. I don't want to say too much about Apple, but I think it was a canny move by CompUSA to strike the deal with Apple to feature Macs in a special section. Mac cpu revenue has gone from 3% of store sales to about 15%. Why? Part of it is the higher margin. Comp is making build-to-order pcs and not doing well due to the problems with sub-$1000 boxes. They need the high revenue Mac boxes. Given Dell's management, one would think they will do the right thing with the sub-$1000 box too. Anyway, FWIW, Marc PS--Kind of ironic that Apple is slated to earn more than Compaq this quarter. We'll see how the reports come out tomorrow.