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

To: The Phoenix who wrote (65578)	9/15/1998 1:32:00 PM
From: Chuzzlewit	Read Replies (2) \| Respond to of 176387

Gary, short term, this isn't a problem (since Dell has only an 8% market share). Longer term this means either that Dell must get into other areas or the overall PC market must begin growing at a substantially faster rate than it is currently growing. TTFN, CTC

To: The Phoenix who wrote (65578)	9/15/1998 1:58:00 PM
From: Mazman	Read Replies (1) \| Respond to of 176387

Gary, I agree with Chuzz. Dell needs to keep growing market share to meet earnings and revenue projections. And with PC penetration still in single digits in many large, developing countries, esp China, there is plenty of room for growth. regards, mazman

To: The Phoenix who wrote (65578)	9/15/1998 3:28:00 PM
From: JRI	Read Replies (1) \| Respond to of 176387

Gary- I'm still waiting for you to post information substantiating your view that Dell will have trouble growing sales and earnings starting in early 1999...So far you have not done so... You asked: "How does DELL keep their revenue and earning growth rates up given the market is growing much slower than DELL and given that PC and server prices are erroding?" Sorry, but this is a question typical of someone who has not spent a lot of time reading posts on this thread/researching the company.... Spend a half day and go thru posts from June/July....This topic was discussed ad nauseum.... If you think about it, falling ASP's are irrelevant, as long as the cost to produce these machines is falling at an equal or greater rate (all other things being equal)...Quarter 2 is a great example....ASP's continued to fall for all vendors (some, more than others, depending on their product mix and other factors)....Dell' gross margins INCREASED, EARNINGS (on a % gain basis) INCREASED...Why? In part, because component prices fell faster than ASPs...This is one of the beautiful things of Dell's model...Something I dont think you (yet) fully understand.... Don't worry, you've got plenty of company (Oppenheimer, others) Concerning overall market growth, I have posted to you before......Dell sells 94% (probably 95% of its computers) to Europe and the Americas (with North America accounting for more than 95% of that total)....So, when you are looking at overall growth rates.....focus more on future growth in Americas and Europe.. This is more critical! Second, in Asia (which, again, only makes up 5-6% of the overall total), two of Dell's biggest markets are Japan and China....Overall computer sales in China are growing at 40-50% per annum....Japan sales are picking up in Q3, and were good (for Dell) even in the 1st half of the year.... One thing that is often not considered: The current crises is Japan is hurting Toshiba, Acer, and other Japanese manufactures big time. They compete with Dell....One example: Acer had to back out of purchasing Siemens-Nixdorf manufacturing facility in Germany....it has a production capacity of 1.4 million units a year...Acer has scaled back its plans in Europe....Which company (companies) do you think benefit when Japanese manufacturers are having troubles? Also, the Asian crisis has helped Dell get components at cut-rate pricing.... So, think about, research a little more....All these answers are readily available....I, the thread look forward receiving more information from you....