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: Chuzzlewit who wrote (56823)	8/6/1998 7:08:00 PM
From: jhg_in_kc	Respond to of 176387

Re: this debate on dell vs. cpq. two different business models vertical integration vs. virtual integration if I understood the Harvard Business Review article on Dell. Is there not room for both companies to flourish in the computer assembly market? OT--I have a hunch Amazon is turning itself into an on-line mega store for all kinds of merchandise not just books. THis could be a major investment opportunity? jhg

To: Chuzzlewit who wrote (56823)	8/6/1998 7:26:00 PM
From: Don Martini	Respond to of 176387

Hi, Chuzz! Perhaps you're right.

To: Chuzzlewit who wrote (56823)	8/7/1998 9:00:00 AM
From: WBC	Read Replies (1) \| Respond to of 176387

The BTO/JIT model component sourcing is still strongly based on forecasting and projected quarterly/annual product takes. At the monthly volumes that both Dell & CPQ outsource components, the unit cost differential should be miniscule. As for motherboards and other in-house component manufacturing, rarely have I experienced any in-house component manufacturing division's ability meet the volume scales, quality yields and costs of a lean & mean outsource partner/supplier....it's not their core competency. I really question if CPQ has any COGS advantage over Dell at all.