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

To: Jim Patterson who wrote (43207)	5/19/1998 11:56:00 AM
From: D.J.Smyth	Respond to of 176387

<<The hardware industry on all levels has reached a level of over capacity. This over capacity has lead to earnings shortfalls at most hardware companies. Industry overcapacity exists on all levels. DRAMS, HDDs, CPUs, finnished PC's, Video chips and cards, modems. All of these parts were expensive and in low supply relative to demand at one point. That is no longer the case, and that is a change in the industry.>> 80% of business systems were purchased prior to 1990. these systems need to be replaced in large quantities. this, in part, is what is driving dell - comes from md himself. one main reason for "oversupply" in this area is not due to lack of demand at the box level, but rather increased manu capacity in the americas and asia, especially asia. in the last three years four major asian players trippled their manu capacity and have been dumping products on the market, even while growth has continued to outstrip the overall economy relative to box units sold.