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

To: jim kelley who wrote (58423)	8/15/1998 12:35:00 PM
From: Patrick E.McDaniel	Read Replies (1) \| Respond to of 176387

Jim, it looks like GTW may be in trouble with their Under:)ware program! I have seen commercials that now have the price at $98/month up from $49/month. With that you go from 266 to 300Mhz and you get a DVD. Either GTW underpriced the program from the start or they feel they can get the higher price. At $98/month and turning in the system in 2 years the program makes NO SENSE AT ALL! Pat

To: jim kelley who wrote (58423)	8/15/1998 1:55:00 PM
From: rudedog	Read Replies (1) \| Respond to of 176387

Jim - It looks like you are wrong about CPQ manufacturing all their PC's. I'm not sure of your logic here - why does this discussion of inventory turns lead to the conclusion that CPQ does not build these machines? I know that some laptops are manufactured in Taiwan (as they are for all of the majors), and some subassemblies are also made elsewhere. There may well be other components or products which are farmed out. What I said was that the bulk of consumer product is made by CPQ here in houston, which is a fact that anyone can easily verify just by coming here and talking to some people who work on those manufacturing lines. This is not a conclusion or assertion on my part, it's a simple observation. The high turns ratio in the consumer business is driven by the same dynamic that drives Dell's high turns - the products are sold before they leave the factory. In the consumer lines, CPQ is almost certainly more efficient than Dell. This is a highly optimized JIT system which has the advantage over Dell's MFG model in that all of the products in a given run are identical, whereas Dell has to configure each machine.