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

To: SecularBull who wrote (50066)	7/7/1998 9:56:00 PM
From: Chuzzlewit	Read Replies (3) \| Respond to of 176387

LOD, it might be true that declining ASPs are a problem, or it might be a sign that the company has found a better price point that will enhance the bottom line. There are three pieces of evidence that leads me to believe that concern with ASPs is overblown. First, remember, Dell is a market leader. I don't believe it is a price taker. That means that its pricing sets the bar for the competition. Second, Dell demonstrated an increase in gross margins this last quarter in the face of rapid drops in ASPs industry-wide. And third, component drops have been steeper than drops in ASP. Taken together, I think there is little reason to be concerned. TTFN, CTC