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

To: jbn3 who wrote (47785)	6/16/1998 1:47:00 AM
From: D.J.Smyth	Read Replies (1) \| Respond to of 176387

"more cheap PCs". this article reminds me of a cheap iron my wife bought a couple years back on the discount shelf for $10. "All irons are alike" she said. Well, three $50 shirts later (ruined), she splurged and bought an iron costing 10 times as much. How much did this iron cost? $10 + $150 + cost of new iron, including the time and trouble = too much. most businesses have gone through the same trial and error. cheap is ALMOST never better.

To: jbn3 who wrote (47785)	6/16/1998 7:36:00 AM
From: Patrick E.McDaniel	Read Replies (1) \| Respond to of 176387

3, Dell Computers may get a Dell unique look at startup. Still, Dell's chief executive said Monday his company initiated talks with Microsoft about custom-designing its computers because it sees big benefits to buyers of machines that are more closely tailored to their needs. "We see opportunities to enhance the user experience," Michael Dell said. He said the company wants to customize the way computers look and interact with users "and we will take our own initiative to do so." techserver.com Pat

To: jbn3 who wrote (47785)	6/16/1998 10:03:00 AM
From: rudedog	Respond to of 176387

3 - There have been numerous studies done in the last 5 years which show that the sum of all capital costs (HW and SW) in a corporate PC purchase is less than 12% of total 5 year cost of ownership. So if the PC manufacturers GAVE THE PCs AWAY it would only affect the cost of ownership by maybe 5%. This is one of the reasons that companies like CPQ are concentrating on service (35% of cost of ownership) and Dell is concentrating on maintainability (25% of cost of ownership) - these are measurable advantages that corporate america will pay for. I discussed the advantages of lowered capital cost as a driver of book value versus utility value previously. It's not insignificant but it is not big enough to weigh heavily against the other values. If Dell improves maintainability by 10% they provide exactly the same financial benefit to customers as if they cut the HW cost by 50%.