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

To: Chuzzlewit who wrote (57613)	8/11/1998 1:32:00 PM
From: Geoff Nunn	Respond to of 176387

Chuz, It was not my point that we really don't know the comparative cost structures. I do know that CPQ and Intel have had some well publicized clashes historically in which CPQ failed to receive the volume discounts on CPU prices it felt it deserved. It has been reported that CPQ used the threat of buying from AMD as a threat (unsuccessful as it turned out) to pressure Intel into giving lower prices. My point was that, other things held equal, a manufacturer would rather deal with a customer who makes frequent, steady purchases than one whose purchase patten is lumpy and infrequent. This assumes that the manufacturer's own production pattern lends itself to that. As you suggest, if the manufacturer's own process is lumpy (large production lots), supplying steady frequent shipments of product to a customer like Dell may not be optimal. Geoff