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To: jbn3 who wrote (47781)	6/16/1998 12:44:00 AM
From: David Weis	Respond to of 176387

hi there 3 --- what are YOU doing up so late????? anymore updates or changes in our plans for the DELL annual meeting??? just curious.....I've been away from the thread....... david

To: jbn3 who wrote (47781)	6/16/1998 1:20:00 AM
From: jbn3	Read Replies (3) \| Respond to of 176387

More re "cheap PCs" Here is one reason that I don't believe corporate America will be rushing to buy them. The true cost of these machines might be prohibitive. dell.com DELLish, 3.

To: jbn3 who wrote (47781)	6/16/1998 1:41:00 AM
From: D.J.Smyth	Respond to of 176387

<<Wait until cheap Japanese PCs flood the market>> think about this a minute with me: which of the following statements are true? (a) productivity per man hour in Japan is 1.2 X that of the U.S. (i.e., the U.S. can produce 20% more per manhour than most Japanese manufacturers), although this figure may be more benign relative to PC manufacturing, nonetheless, certain PC segements do show productivity gains over Japanese competitors (b) "cheap Japanese PCs" are a function of both hardware and software costs. given the devaluation of the yen since last August, this means the Japanese must pay 40% more for software than previously assumed. Although many PC hardware parts are produced in Japan, the main gear, Intel's CPU, for example, is produced and purchased from the U.S. in U.S. dollars - the Japanese PC makers must now pay nearly 40% more for a Pentium chip than prior to August 97. (c) Japanese labor isn't as cheap as many assume. Relative to the U.S. in PC manufacturing, Japanese labor is more costly overall, i.e., in Japan they'll hire 10 people to complete tasks that the U.S. can complete with 8.5, and generally (sometimes unfortunately) at lower cost per manhour (they have universal health care and other perks in Japan that the U.S. workforce in general doesn't enjoy) (d) the Japanese originally invented the idea of Godzilla. Actually, all these statements are true. The bottom line is that "cheap Japanese PCs" currently don't exist even with the yen devaluation as various sector's rising costs are offset by various sector's falling costs. Mainly Korea and China can boast of cost production differentials with the U.S. given the Wan's and Yuan's valuation. There are other factors to consider.