Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: jim kelley who wrote (48734)	6/23/1998 12:43:00 PM
From: Jim Patterson	Read Replies (1) \| Respond to of 176388

RE: You are claiming to know DELL's margins. Could you please post the margins for laptops, servers, workstations, and desktops. Even Meathead does not know what they are. Jim, I do not claim to know their margins. From what I have read about the industre, and the analysts in depth reports, I am drawing a conclusion. Lower priced boxes get lower margins, and Higher priced and generaly more complex boxes generate a higher margin. If you think I have assumed too much here, Sorry. If you look through their monthly catalogues as I do, it weems they want to keep prices in the 2,200-2,500 range for popular looking stuff. If you study the trends from month to month, you will find that a machine will hold about the same price, but the HDD and RAM will increase but the monitor will decrease, the following month, the monitor will come back up. Then it will be another part. Add a little here, and a little there, if it is too much, take a little out here, then put it back. Well over time thoes little parts start to get rather large. For instance, Part ## 590-6-14 6-14 (is the date of the catalogue. June in this case) Compare: #590-6-14 with #590-5-11 PII 400 PII400 64MBSD 64MBSD 11.5GB 8.4GB 1000LS17" 1000LS17" STB4MB3DAGP Dia8MB3DAGP 32XCD 32XCD CrystalWave Turtle Beach 100MB Zip No ZIP Rest is the same $2,499 $2,499 Next month, the Vcard will probably be up to 8 with more DRAM I hope this illistrates my point. How much longer before this machine is a first class workstation ? Do buyers know they can save hundreds of dollars by cutting that HDD to a very reasonable 5GB ? This all relates to margins of DELL. With the $3,699 400 machine on the same page, all stayed the same but they added a Zip and a 10/100 Eithernet card, and upgraded the speakers. Next month, this one will come down in price. Jim