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Technology Stocks : DELL Bear Thread -- Ignore unavailable to you. Want to Upgrade?

To: Bilow who wrote (1654)	8/25/1998 1:46:00 AM
From: put2rich	Read Replies (1) \| Respond to of 2578

In your analogy one day computers almost become disposable or forgettable like cheap calculators? I think it is hard to have a systems on a chip/several chips are that people want special sound/video/interface cards. And harddrives and floppy drive are still large, cables take a lot of space (so a large motherboard)

To: Bilow who wrote (1654)	8/25/1998 10:28:00 AM
From: SecularBull	Respond to of 2578

Bilow, you misunderstand DELL's target market. It is not for expensive computers, but rather for the latest and/or high performance computers (this is a generalization). The latter just happen to be more expensive than the stripped-down models your trying to make your case with. LoD

To: Bilow who wrote (1654)	8/25/1998 12:35:00 PM
From: Investor2	Read Replies (1) \| Respond to of 2578

RE: "DELL is not the company to bet on ... They have the wrong factory line. They have the wrong market target segment. They have the wrong distribution. They are not vertically integrated with the ability to produce systems on a chip. They are not the company to bet on for this technological change." Which company has the right factory line? Which company has the right market target segment? Which company has the right distribution? Which company produces systems on a chip? Whic company is "the company to bet on for this technological change?" Best wishes, I2

To: Bilow who wrote (1654)	8/25/1998 2:40:00 PM
From: Mitchell Ryan	Read Replies (1) \| Respond to of 2578

<<This is a major problem that DELL has failed to address. It is quite similar to the major problem that the US auto makers faced when they became uninterested in selling small, cheap, automobiles. The problem for DELL happens when the affluent families (and businesses) start buying the cheaper computers.>> Bad analogy! The US auto makers are doing quite well selling high priced vehicles (SUVs for example) to the affluent. If your argument was true, the roads would be dominated by small econoboxes. These small, cheap, automobiles were a reaction by the public to high energy prices. Now that fuel is cheap, big and expensive seems to be in vogue. The real reason why many consumers don't need the highest performance PCs is that the bandwidth into their homes is insufficient to fully exploit the capabilities of higher-end machines. The bandwidth limitations will be solved, and this will enable new classes of applications that will fully exploit these high-end systems. Many consumers who purchase sub-$1000 PCs with the expectation that the system will not be obsolete in 3 years, will be in for a rude awakening. Ryan

To: Bilow who wrote (1654)	8/26/1998 12:15:00 PM
From: WBC	Read Replies (1) \| Respond to of 2578

You have arrived prematurely to your conclusion and are then creating favorable statements and scenarios to support your view. I agree with Dell's philosophy to avoid the low end/low performance market...successful companies know that it is difficult to be highly profitable and "be all things to all people" at the same time. Compaq's channel has demanded the low end products for their shelves so they can compete with clones for the "uninformed" first time user market. The Dell market has not asked for these low end machines. Dell will get them when they upgrade for quality & performance...provided the modem on their "cheapie" still works. Numerous times, upmarket/performance car brands have tried to lever their name in lesser markets with different success. Cadillac has failed miserably going down market with the Cimarron because of poor quality and a low value proposition. M-B & Lexus have successfuly gone down market with a high quality value proposition with their 6 cyl models. IMHO, there is not a high value proposition in the sub 1000 range that won't hurt a company's branded image. Hence Dell stays out !.