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

To: Techie who wrote (48613)	6/22/1998 10:41:00 PM
From: Chuzzlewit	Respond to of 176387

Techie, you are still avoiding the question. Show me precisely how CPQ's gross margin decreased by around 10%. If what you said is true, how is it that Dell's gross margin increased, and it was attributed to moving into higher-end gear. So explain to me please how this is possible. Given what Mason said earlier this year about everything being on track, I have a great deal of difficulty accepting the company's veracity. By the way, I own IBM, and I have said very positive things about GTW. I have a negative view towards HWP and CPQ. TTFN, CTC

To: Techie who wrote (48613)	6/23/1998 2:05:00 AM
From: K. M. Strickler	Respond to of 176387

T, Yes, price competition at high end, ie - DELL indicated that the server are was one which DELL expected to enter, and do so by reducing gross margins from ~30% to ~22%. This meant that HWP and CPQ, in order to remain competitive would have to lower their gross 'server' margin. Now, if all of the companies, throw all of their profits into a pot called ASP, and in addition to competing with DELL on DELLs terms regarding a profit of ~22%, have to compete in the sub-1K arena, where DELL does not participate, and the ASP is obviously lower (sub-1K), even if ALL OF THE OTHER FACTORS WERE EVEN, DELLs profit margin of ~22% would be higher than other manufacturers BECAUSE DELL DOESN'T HAVE THE SUB-1K COMPUTERS LOW MARGIN TO DROP DELLs MARGIN AVERAGE! >>> Your propaganda to trash every other OEM to promote Dell sure as hell should be a source of embarrassment for Dell. <<< This statement of yours isn't exactly correct, IMO. It seems to me that most of the members of the DELL thread understand the enormous advantage that DELL has with their BTO-JIT model. The 'cash' flow using this process is nothing short of a 'money generating' machine which effectively allows DELL us use OPM (Other Peoples Money) for up to 50 days, just earning interest! Let me have the 'rolling' interest on several million dollars from now on, and I'll be writing you from 'lots of different and interesting places'! As for the other manufacturers, again IMO, they seem to be having a little trouble competing against the BTO-JIT model, with GTW being the closest. GTWs Yourware is an interesting twist and it remains to be seen how it does. I thought that the Big Screen TV has some possibility, but the display limitation (640 x 800, I think) was just not high enough. JMHO, however! Regards, Ken