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


To: Rosemary who wrote (58804)8/18/1998 10:15:00 AM
From: Chuzzlewit  Respond to of 176387
 
Rosemary,

Dell is already there with profits.

Here's a problem with the article:

Interestingly enough, the company's growth trajectory comes at a time when the average price of a Dell PC is still higher than those from competitors. Dell's average selling price dropped from $2,500 in the first quarter to $2,350 in the second quarter, mostly because of declining component costs, according to Ashok Kumar, an analyst with Piper Jaffray.

Still, that compares favorably to an average selling price of $2,200 for HP and Gateway systems and $1,800 for Compaq, which was effected the most by inventory problems. Other analysts roughly confer [sic] on these figures.


It seems to me that comparing ASP across product lines is misleading unless adjusted for the product mix. Dell does not sell cheap sub zeros -- Compaq does. What about the relative number of notebook sales and high-end servers vs. desktops?

TTFN,
CTC