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

To: Moominoid who wrote (60206)	8/21/1998 11:00:00 PM
From: FR1	Read Replies (2) \| Respond to of 176387

China and the Americas ??? Yeah, that's what I thought at first. Other thoughts too - Let me help you - the average Chinese person makes $60/year. How's that gonna help? Mike's point was this: We have a factory in China now. Let's look at it both ways: China takes a big hit: Wages are depressed. Growth is slow. However, that means raw materials are cheaper. The cost of steel is primarily the labor cost in getting it out of the ground. And we are sitting right on top of that labor (no union dock workers or international transportation charges to get the raw materials). That means DELL computers will have even greater margins or lower prices for the US and Europe. China recovers: Nothing lasts forever and there will be a recovery at which time Dell will have a bunch of plants in China ready to take care of the masses. The other thing, which is hard to estimate, is just how bad "damage" really is. Sure the oil fields need to be fixed - that's mostly hand work. Starvation is unlikely (and if it is a problem we have farmers begging for someone like red cross to take wheat). Most of the countryside does not have hi-tech machinery that will cost a zillion dollars to replace. I bet no NMR scanners get damaged - because there are none. Almost all of the floods are in the interior - not the hi-tech high growth areas. The good thing about a third world country is even a tiny advancement is a big percentage gain. The bad thing is that it takes a while to develop a middle class consumer base. It is good to see DELL is there.