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

To: rudedog who wrote (46581)	6/7/1998 12:15:00 PM
From: Geoff Nunn	Read Replies (1) \| Respond to of 176387

It would therefore be surprising if a well managed company got hit by a significant disadvantage from processor or chipset price reductions. Rudedog, Given the fact that suppliers such as Intel provide boxmakers with price roadmaps, perhaps the steady rate of decay model is not so unrealistic after all. The price roadmap actually makes a lot of sense. It enables both supplier and boxmaker increased efficiencies by permitting each to smooth out their inventories. However, the fact remains that inventories depreciate, and just because a boxmaker has a road map, and can see the depreciation coming, doesn't make it any less so. The best indication of value is what something sells for in the marketplace. If you are holding inventory you paid more for than its current price, you have incurred a loss. Having a price road map doesn't alter that, it's still a loss. You may feel this loss most acutely when you see the price reduction pass through to a lower market price on your rival's PCs. Perhaps it's here you realize the over priced components you are stuck with are a loss you must eat. Just my opinion. Geoff