Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: SecularBull who wrote (60499)	8/24/1998 11:38:00 PM
From: rudedog	Read Replies (1) \| Respond to of 176387

LoD - who do you think that Intel is going to prefer to do business with? Dell or Compaq Even before the DEC acquisition and Alpha, Dell had a much better relationship with Intel than CPQ. Dell had committed to all-Intel product, used Intel MB's in the dimension line, and worked closely with Intel engineering on testing of new chipsets. CPQ had been a thorn in Intel's side for years, going back to the late 80's when they began a heavy development with AMD. CPQ also helped fund NextGen, and supported Cyrix when they bought NextGen. Intel doesn't react kindly to companies who help their competitors. But in terms of delivery and pricing of Intel products, CPQ enjoyed (and still enjoys) the lowest prices in the industry, thanks to their volume purchasing agreements. Intel can do a lot to put their thumb on the scales but Dell's purchasing pattern and overall volume still leave CPQ with an advantage in price. And BTW Intel gives volume purchase customers advance notice of price changes. It's a practice not unlike price protection in the channel. So the mythical advantage that I have seen proposed here (Dell gets to ship products with lower cost because CPQ has all that WIP inventory) is not true at least for CPUs. Still true for product in the channel though...