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

To: K. M. Strickler who wrote (48403)	6/21/1998 12:10:00 AM
From: Techie	Read Replies (2) \| Respond to of 176387

K, yes Dell will lower ASPs and maintain profit margins. But if they don't gain market share BIG TIME, it won't be enough to keep them on the growth path they (and you) got used to and that would mean shrinking P/Es. I was too lazy to go dig up my notes for Meathead (he doesn't deserve it) but here is MD's exact words: "Declining costs have positive and negative affects. If you can sell them UP it's ok. But at the rate the components are declining there is almost no way for ASPs not to decline". By UP he means a higher end machine. As for the lower wafer starts. No, it's not because of changes to process or anything like that. Ask Ronald Norris (President of TSMC USA), he'll tell you. It's lower unit demand all right and it only surfaced this quarter.

To: K. M. Strickler who wrote (48403)	6/21/1998 10:29:00 AM
From: Techie	Read Replies (1) \| Respond to of 176387

K, here is something you might enjoy... --Sematech: 15 more DRAM fabs than are needed-- The semiconductor industry currently has about 15 more 200-mm DRAM fabs than it needs to adequately serve worldwide memory demand, according to a simulation model disclosed here during the Third Annual 300-mm Symposium. According to SBN's J. Robert Lineback, the glut of DRAM fabs is not only driving down memory prices but it is also playing a key factor in delaying the industry's transition to larger 300-mm wafers. and I even have a URL for you! edtn.com