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

To: kemble s. matter who wrote (53622)	7/23/1998 7:30:00 PM
From: D.J.Smyth	Read Replies (3) \| Respond to of 176387

Gateway made $.62 a share without 2% increased SG&A which the CEO claims is an event to beef up the sales force (15%). Hereafter it will go back to the average of 13% as in the past. I wonder who reads these reports any more. A comparison bw Dell's upcoming and past quarters and Gateway's: (a) Gateway's unit sales - were down sequentially Dell's unit sales - according to Meredith will not only be up, but be surprisingly up (b) Gateway's SG&A increased 2% sequentially Dell's SG&A according to Meredith will be in line with previous expectations to slightly down (c) Gateway's gross profit margin stands at 20% Dell's gross profit margin is over 22% (d) Gateway's component costs are about the same sequentially and down about 20% year over year Dell's component costs will be down sequentially and down about 40% year over year (e) Dell is entering new markets: the Server Market and the Storage Market (f) Dell is building new plants to hot China and South America. Dell's european sales are up substantially higher as a portion of their overall sales relative to Gateway. (g) Gateway's AUP (average unit price) was down 2.4% from last year, but about the same sequentially. If we can expect the same from Dell, Dell's quarter will be very good as many are predicting. Some were speculating ASP's would be down 4% sequentially. But that wouldn't be the case if Gateway's ASP's are not down that much and Dell has the added benefit of the servers, higher laptop percentage sales, etc. Cleary, the Gateway report and past and future Dell reports have little in common other than they both sell computers.