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

To: Techie who wrote (48400)	6/20/1998 11:41:00 PM
From: K. M. Strickler	Read Replies (2) \| Respond to of 176387

T, If the component prices are falling so fast and so much, and if DELL has such a low inventory, wouldn't DELL be able to lower the ASPs a bit, and still maintain their profit margin while 'squeezing' those manufacturers that are maintaining larger inventories? Now for the lower 'wafer' starts, now that IS an interesting point! Could it be that they are 'gearing' up for the next 'newer' mask? I don't know what the overlap might be, but thought that there must be some changes made to the process. Just a thought. Regards, Ken

To: Techie who wrote (48400)	6/21/1998 1:43:00 AM
From: rudedog	Read Replies (1) \| Respond to of 176387

Techie - Good research on Intel's pricing, and the other component costs. No question they are continuing to go down. Will Dell's ASPs go down as a result? I will assert again that the answer is in Dell's hands. If they follow the course that the high end RISC vendors have taken, then they will provide substantially better value at their current price point (same bucks, more bang) and do only a careful defensive play on the low end. Or they could follow the component price curve down on the 'value lines' and drive more options and features in the high end. There are many ways to skin this cat (chuz, no offense intended, just a figure of speech from the dog side of the aisle). So I agree with all of your data and even your fundamental analysis but the conclusion that ASPs will fall at Dell, or that margin will suffer even if ASPs do fall, is not yet justified.