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

To: Mr. Aloha who wrote (44247)	5/22/1998 12:13:00 AM
From: Patrick E.McDaniel	Read Replies (1) \| Respond to of 176387

Aloha, look at Dell's report. They improved margins, added units continued excellent growth in higher end units while others were feeling the pain of selling low end units. Dell had net earnings of many of the low end sellers combined. That's a fact Jack! P.S. It is good thew others are selling low end machines now. Dell will pick them up next year! :o)

To: Mr. Aloha who wrote (44247)	5/22/1998 12:35:00 AM
From: Chris Nevil	Read Replies (1) \| Respond to of 176387

<<How many people will buy a 400Mhz DELL for $2400(?) when they can get a 266Mhz for $1500(?) How many units will ship? What are the margins? What percentage feels the need to pay $900 more today for what will be $1500 in six months? People are learning that it just doesn't make sense to throw money away for a 6 month advantage.>> I humbly submit myself as an example. I waited months, heck years to find the "sweet spot" before buying a new desktop, then ultimately had a virtual seizure of impatience and bought a Dell 333 in March for big bucks, knowing that the faster Deschutes machines with the important 100 mHz system bus were just months away. If I had it to do over again would I wait? In hindsight yes because of the significant performance difference at an almost equivalent price...but I'd be willing to bet you that next time I'll fall prey to the same capriciousness again. And I bet I'm not alone... Chris

To: Mr. Aloha who wrote (44247)	5/22/1998 12:36:00 AM
From: Sig	Read Replies (2) \| Respond to of 176387

Mr. Aloha: <<< The point you folks need to focus on is what DELL will do this Quarter based on what the industry is doing. If DELL holds this price even though INTC and most of the other tech stocks slide a little, WHAT will happen if the momentum is taking away from DELL with a not so stellar earnings report? >>>> The point I am focusing on is to hold on to the stock I have and find money to buy more during this very predictable down-trend. As far as I know the next quarters earnings estimate is provided by the company. Trust me when I say the CFO of Dell is one of the best to be found in the industry, and there is no way they will not meet or exceed the estimate for next quarter. This URL shows what Dell is focused on: wgss.com OVERVIEW Sig

To: Mr. Aloha who wrote (44247)	5/22/1998 1:11:00 AM
From: Greg Jung	Read Replies (1) \| Respond to of 176387

Aloha, its not the fundamentals its just too expensive. Unless you thought the earnings were to increase by 50% for the next two years. Does anyone feel right driving a car while facing to the rear? It may work for a while (fun also to kill the lights at 60 MPH on a dark lonely highway) but the fear overtakes you. I would have no problem buying Dell if I were confident it could indefinitely increase earnings at the rate it has been. Its sales are now about 8% of entire computer industry, and these machines are getting cheaper and they carry a three year warranty. Same story for a few years now, yet Dell has found a way to pull the rabbit out of the hat. And this situation was not caused by the earnings (which were blow out) but just by a bit of rational thought. 7 months ago this stock was extremely high-priced at 1/2 the cost it is today. I don't know where I'd begin to buy it, but at the time it gets to my price there will be plenty of other competition. Greg

To: Mr. Aloha who wrote (44247)	5/22/1998 11:11:00 AM
From: Meathead	Read Replies (5) \| Respond to of 176387

Mr. Aloha. How many people will buy a 400Mhz DELL for $2400(?) when they can get a 266Mhz for $1500(?) How many units will ship? What are the margins? What percentage feels the need to pay $900 more today for what will be $1500 in six months? People are learning that it just doesn't make sense to throw money away for a 6 month advantage Now do you understand why Dell does'nt target the individual consumer as heavily as corporations? Your livelyhood is not based on the IT infrastructure or computing power of your home vs. everyone else on your street. Do you realize how expensive it is to go through the physical corporate replacement of a computer? It can easily cost more than the PC itself. Many companies are forced to upgrade periodically to stay competetive and will buy the PC with the longest lifecycle in order to extend the time it stays on an employees desk. Today's leading 400/100 systems have the potential to outlast the 266/66 by at least two years not six months. Here is a simple lifecycle cost analysis (This is how companies, not individuals view PC purchases. HIGH END PURCHASE one time PC cost 2400 one time transition costs 2000 yearly admin costs 4500 5 year total 26,900 Cost per year 5,380 YESTERDAYS BARGAIN TECHNOLOGY one time PC cost 1500 one time transition costs 2000 yearly admin costs 4500 3 year total 17,000 ** UPGRADE AGAIN one time PC cost 1500 one time transition costs 2000 yearly admin costs 4500 2 year total 12,500 5 year total 29,500 cost per year 5,900** Multiply that by 1000 systems. What makes more sense, a savings of 900,000 or a savings of 2.6 Million? Your response is typical of someone who does not understand who buys these new products, why they buy them or how product transitions occur and why they are hugely profitable for companies like Dell. You like most, can only conceive of a PC's value based on your own usage model. Dell is right now ramping up sales of their 400Mhz/100MhzFSB systems. Meanwhile they are ramping down sales of their <=333Mhz/66MhzFSB systems. They are the masters of these types of product transitions and are leading the way. Why? Because that's what their corporate customers DEMAND. You can bet they won't be stuck with any E&O when the industry fully shifts to 100MhzFSB purchases later this year. Right this moment, companies are purchasing 400Mhz systems. Dell will sell more today than they did just yesterday. The ASP's and margins are extremely healthy on these systems and that goes directly to the bottom line. They've done this with every-single-product-upgrade since the 286 processor... and all along the way there were folks like you saying it was a mistake to be selling next generation systems that nobody needed, wanted or were willing to pay for. History proves your demand concept to be incorrect. MEATHEAD