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

To: Chuzzlewit who wrote (39810)	4/30/1998 10:08:00 PM
From: Boplicity	Read Replies (1) \| Respond to of 176388

From the rmbus thread. ... Connector cos. must adjust By Pete Curwen For some time, the battle cry in the PC industry has been: "sub-$1,000 systems or bust!" But now this has been replaced by another goal: "sub-$500 systems or bust!" The rapid shift from $1,000 to $500 has been amazing. Within a year, the industry has crashed through the $1,000 barrier and is rapidly moving on the $500 target. An incredible aspect of this is that the cost/performance ratio of these machines has been improving; in other words, consumers are getting more for much less money. Because new technologies are available to all suppliers at practically the same time, the differentiators between suppliers have moved from technology to services and price. If not already there, the PC is on the verge of becoming a commodity. This is causing some rethinking about business models, and in some cases new models are being employed. The OEMs that modify their business models to respond to a commodity market will be the ones to survive. The same is true for the OEMs' component suppliers, such as interconnect manufacturers. Commodity characteristics What is a commodity? This discussion sparks endless debate, so rather than try to define commodity, let's concentrate on its key characteristics. First, there is strong demand. Second, there are many suppliers that generate a high degree of competition for market share; service and price are primary differentiators. Third, commodity products tend to have low margins. A common phrase used in a commodity market is, "Bomb the price, we'll make it up in volume." This is a pretty accurate statement as long as the cost structure is in place. A company must be able to support "price bombing" while providing quality and service, and still achieve enough margin to make it worthwhile. So what does all this have to do with interconnect makers? Everything. Interconnect manufacturers must modify their strategies to operate in a high-volume, low-margin business and still provide the service and quality necessary to capture a large share of the market. What are some of the strategy and organizational changes that an interconnect company must follow to succeed in the commodity-PC market? The first thing required is a volume marketplace for a common product. Enter the role of standardization committees, whether sanctioned or ad hoc. Standardization activity in the PC marketplace has been increasing for several years and continues aggressively. Standards such as USB, P1394, Slot 1, AGP, and now the RIMM socket for implementation of the Rambus Direct memory are all examples of such activity. These standards are critical to creating volume demand for a product that allows for the development of low-cost manufacturing processes.

To: Chuzzlewit who wrote (39810)	5/1/1998 12:07:00 PM
From: kemble s. matter	Read Replies (1) \| Respond to of 176388

Chuzzelwit, Hi!! Got me laughing!...But, did have a call from a woman yesterday who sought me out only because her grandfather was the great Oklahoma State wrestling coach...she thought since I coached wrestling I would be willing to talk to her..she only wanted the location of this thread...Now, that was nice...it makes me feel wonderful to know that there are individuals out there that realize great things have occurred over this thread...I thank you all for the info that has poured out these past two years...Like my web site says..."If Kemble can do it...anyone can" Yes, you did it correct..someone like me must keep it simple: BUY DELL Best, Kemble