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

To: Bilow who wrote (46807)	6/9/1998 2:04:00 AM
From: lin luo	Respond to of 176388

Do you believe that the existing species will not be killed by the competition, but rather by the new species. e.g., the typewriters disappeared because the computers appeared. Regards!

To: Bilow who wrote (46807)	6/9/1998 5:13:00 AM
From: Sig	Respond to of 176388

Bilow: You have presented two outstanding well written posts regarding the past and future aspects of computing electronics and vertical integration of systems which when implemented will produce major changes in the inards of computer systems. I want to balance that with comments on Dell- provided components on which they make money that will not be changing as swiftly. Before me on the desk is metal tower computer housing, a keyboard,a 17 in monitor, a legal size Epson printer, two quality external speakers, a microphone, a Paperport scanner, a 6 element + phone line surge protector, a USRX 56 K modem, and a Paperpoint scanner, cabled together with about 13 cables including 4 standard power plugs, 6+ multipin data cables and two transformers. I cannot think of anything here that Dell actually "builds", although they would have many contracts to build items to their specifications. Yet most of them are available as a ( very well coordinated) purchase package or individually from Dell, and Dell will be able to make a profit on each of the items thru their excellent purchasing efforts and JIT assembly processes. 1. The std monitor is still electrically more efficient and less costly than any flat panel monitor( See article in latest Scientific American). And the desire exists for larger monitors. 2. The computer housing has to accommodate one or more CD players, one or more disk drives, and a regulated power supply, so regardless of the miniturized electronics, will not change overnight And for Pat, will also need a DVD slot(gggg) As a side note, computer housings will be built by or for Dell at the new 570 acre Dell industrial site in Austin. 3. The keyboard will remain basically unchanged( I hope!) and it is not the minimal $9 type available elsewhere. 4. The external cables are particularly standardized, UL approved, RS 232 ( is that still std?) shielded when needed, screw connected. So when Dell wins a contract to supply 17,000 computers ( they love big contracts), those computers will include many standardized components so that you don't have to rewire the entire plant( which may be located in several different locations or even States(ggg)), or have 17000 users adapt to a different sized keyboard. Since you work in the industry, you are well aware of the the electrical standards, the limits on electromagnetic radiations,the Mil Specs, The BA and other company specs, the NRC approvals to build anything that goes in a nuclear plant, the FAA specs etc. and it must be a big pain to get any new products approved for use other than consumer products. In summary, when the new products you discussed are available and approved Dell will be one of the first to make them widely available.But Dells basic output (and profits)will not change overnite ( Not all the items discussed are available from Dell) Regards Sig

To: Bilow who wrote (46807)	6/9/1998 8:00:00 AM
From: Dr. David Gleitman	Read Replies (1) \| Respond to of 176388

Forgive my ignorance, but besides being a snake, what does "ASP" stand for? Your inquisitive colleague, David

To: Bilow who wrote (46807)	6/9/1998 4:26:00 PM
From: Geoff Nunn	Read Replies (1) \| Respond to of 176388

Carl, you wrote: The next big change in computers will allow new companies to start similar to the way Dell got its start. My guess is that those companies that will be the most efficient will be the ones that are vertically integrated, just as in other mature industries. Dell is not in a position to easily vertically integrate itself. HWP could make set top boxes a lot cheaper than Dell, cause HWP would be vertically integrated. What do you mean vertically integrated? If you mean that several stages of the production process are combined under single ownership, which is how the term is normally used in economics, then I would have to disagree with you. If what you mean is virtual integration, a term Dell apparently has coined, then I would very much agree. A vertically integrated computer manufacturer is one that makes its own components (disk drives, memory chips, app. software, etc.) As you know far better than I, this is how computers used to be manufactured (DEC, IBM). Yet today the business seems to be moving away from that. The most successful of the leading boxmakers, Dell, is the one least vertically integrated. The one most integrated - correct me if I'm wrong - is Apple. As everyone knows, when similar systems are compared Apple is less efficient than any other major pc manufacturer. The figure I've seem is that Apple systems cost ~20% more to manufacture than do PCs. Some economists have suggested the main problem with Apple is too much v. i. Of course, Apple's costs are also higher because it lacks economies of scale. In his interview in HBR Michael Dell makes abundantly clear his belief that v.i. is where the industry used to be, not where its headed. He discusses an emerging phenomenon called virtual integration, and suggests this is more efficient than v.i., and where the new challenges and opportunities lie [ and not in boxmaker design BTW ;o)] VI emphasizes more tightly-knit coordination and service relationships between suppliers, boxmakers, and commercial end-users. Focusing on both supplier and boxmaker each finding ways of better meeting the others' needs -- and ditto for the boxmaker-customer relationship, allows all parties to achieve higher levels of efficiency and productivity. This, Carl, is the stuff of which greater profits can be made! If you read the HBR article, and I encourage you to do so (would love to hear your take), then look for a particular word Dell uses which I think he would probably apply to you. Don't take offense, the word is "engineering -centric" Does that sound about right? <ggg> Geoff