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Technology Stocks : DELL Bear Thread -- Ignore unavailable to you. Want to Upgrade?

To: Lee who wrote (835)	5/25/1998 2:43:00 PM
From: jjs_ynot	Read Replies (1) \| Respond to of 2578

Lee, So you interpret Barron's statement that consumer sales to comprise over 2/3 of DELL revenues; they are in actuality referring to PC sales? Would this then reconcile the two statements? dave Based on: We have about 10 percent to 12 percent consumer [business} this would suggest about 16 to 20 percent of DELL PC sales are to consumers. Is that a number that is consistent with data from other sources?

To: Lee who wrote (835)	5/25/1998 5:24:00 PM
From: AlanH	Read Replies (2) \| Respond to of 2578

Lee, Dave_S -- Perhaps it can be reconciled in this way... From the March Upside Interview: Is the server business your fastest-growing business right now? No, that's not true anymore. The workstation business is the [fastest growing]. We sell [workstations] primarily to financial institutions and to the engineering, scientific and software development markets. What percentage of Dell's revenue is represented by servers and workstations? Last quarter, it was 10 percent of revenue, and it grew maybe 313 percent from the prior year. The 10% here may be associated with the Barron's 11%, but that's immaterial. The Barron's article focuses on where price sensitivity may be problematic. (I'll bet that's what you are concerned with as well?) So, we see that MDell is substantiating growth in the high-end (aka, workstation, server) business -- a segment which represents 10% of revenue (as of last quarter). Whether we call a segment 'individual' or 'consumer', we can agree that this area is subject to pricing pressure. IMO, this is the reason DELL is attempting to ramp the 10% workstation/server business.