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

To: VICTORIA GATE, MD who wrote (52452)	7/19/1998 10:30:00 PM
From: K. M. Strickler	Respond to of 176387

VG, >>> Dell Could Face Tough Time Sustaining Strong Earnings Growth <<< Interesting concept, but I wonder how much of the lower ASP is 'washed' out by the lower component cost that DELL is able to get? I don't know what Vanstar has in the way of inventory turn, when compared to DELL. Projecting DELLs profits based of Vanstars experience is interesting at best. Vanstars ASP is quoted at -21%, and it is compared to DELLs 'growth' of being -22%. Isn't that comparing two different things (prices vs growth)? I'm having a little trouble here! I'm sure I need a DOCTOR! Regards, Ken

To: VICTORIA GATE, MD who wrote (52452)	7/19/1998 10:31:00 PM
From: Jack T. Pearson	Read Replies (3) \| Respond to of 176387

VG, The NY Times commentary was interesting. I wonder how they would explain that Dell made its numbers during a price war but they see hard times for Dell now that the price war is over? Jack

To: VICTORIA GATE, MD who wrote (52452)	7/19/1998 10:38:00 PM
From: SecularBull	Read Replies (1) \| Respond to of 176387

More of the same old stuff. DELL isn't threatened by CPQ and IBM, until such time as they FULLY adopt the direct model. Otherwise, these companies will not be able to compete efficiently with DELL's direct model as they try a direct-indirect hybrid which will be less efficient. The real bug is that if they fail to adopt the direct model, the companies will fail to maintain their significant market share, IMO. LoD

To: VICTORIA GATE, MD who wrote (52452)	7/19/1998 11:09:00 PM
From: HDC	Read Replies (1) \| Respond to of 176387

VG, Just because Vanstar's numbers have dropped does not mean that Dell's must also given that they are in the same markets. It appears to me that the reason Vanstar's sales and profits have declined is due to the fact that they are up against Dell. Dell is the survivor of this market and is profitable. The other big 3 PC mfgrs have been promising build-to-order for almost a year. This fact is lost on the writer of the article. Even if the other mfgrs successfully implement a bto model, they still must sell their PC's through the wholesaler-reseller channel. These middlemen must have a markup. This leads to Dell's direct selling advantage and to profits. I personally hope that the other PC mfgrs can be at least partially successful at bto. I would be a welcome relief to see EVERYONE finally making some money in this business again. Regards, Duncan