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

To: rudedog who wrote (56678)	8/6/1998 2:33:00 PM
From: Eddie Kim	Read Replies (1) \| Respond to of 176387

But that's not true in the consumer space, where the products are pretty much sold before they leave the dock, since they have had a backlog in that segment that goes back years. production never quite catches up with demand, by design. I just recently bought a new Compaq Presario PII 300MHZ. I went to two Best Buys, one Computer City, and one CompUSA before I could find this machine in stock. Also, Compaq's 17" monitor (MV700) was out of stock at all stores except for CompUSA. Luckily they just received a shipment of monitors when I arrived, because their computer system had a inventory of -3 for 17" Compaq monitors.

To: rudedog who wrote (56678)	8/6/1998 3:06:00 PM
From: jim kelley	Read Replies (2) \| Respond to of 176387

Dog, You have been drinking too much scotch whiskey this morning. " CPQ does get substantially better pricing on many key components, as much as 9% in some cases. In the ones I have looked at the average looks like about 5%. " Forgive me but I have to question this statement. Even if you got to look at some of CPQ's costs how in the world would you get access to DELL's costs for the same or similar components? "This allows the most efficient manufacturing model (build a huge run of identical products), the most efficient distribution model (ship them all as they come off the line), and the best component pricing (due to volume). This is why CPQ has been able to make good margins on their lowest priced products. " Again, over the last year or so it has been pointed out that CPQ has the subzero's manufactured for them by a third party company. So CPQ's margins in this case would have nothing to do with the cost of the components only with the cost of the manufactured units. I also question your assumption that DELL can not compete in the consumer end of the business. If the comparative opportunity warranted such competition, you have no guarantee that DELL could not pull it off. I think you are making too many simplistic assumptions in arriving at your conclusions. Respectfully, Judge Starr