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


To: jim kelley who wrote (57353)8/10/1998 4:17:00 PM
From: rudedog  Respond to of 176387
 
Jim -
Or perhaps they are only running out of server products because they have to eliminate the old server products before they sell their new Xeon based units (otherwise they get stuck with more dead inventory
This seems like the most logical explanation to me. Maybe they cut production of the older servers in anticipation of the Xeon ramp and then got caught short when Intel dropped the ball and held up shipments of Xeon parts. I agree that it is a funny response to cut pricing when there is a shortage of product, but from what I can tell the shortage is real at the moment.

BTW I was discounting the internal inventory, I think if they had it they would crank it out to fill orders. maybe the answer there is it's held in parts and not built yet.