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

To: Petrus who wrote (67530)	9/25/1998 2:50:00 PM
From: jhg_in_kc	Read Replies (1) \| Respond to of 176387

ENJOY, ENJOY...Dell 'Very Bullish' Outlook On PC Demand By Christopher Grimes AUSTIN, Texas (Dow Jones)--Dell Computer Corp. (DELL) Chairman and Chief Executive Officer Michael Dell said his company still has "a lot of headroom" for growth, and the outlook for the PC market remains robust. Speaking at the company's fall meeting with analysts here, Dell said that even if the PC market were to slow down, his company and its top three competitors would still see strong growth as users continue to migrate to a few well-known brands. He mentioned Compaq Computer Corp. (CPQ), Hewlett-Packard Co. (HWP) and International Business Machines Corp. (IBM) as the other companies that are growing faster than the rest of the market. "We see a winner's market where all companies are not succeeding," Dell said. "We don't see a consolidator or a limiter of Dell's growth." He said the PC market will likely continue to grow by an average of 17% annually over the next three years. "We have a very bullish industry outlook," he said. "We do believe we will outgrow the market over the next few years." Dell added that the recent problems in Asia and such other worry spots as Latin America have so far not hurt business. "These are markets under intense market turmoil, but our business is looking pretty good there," he said. "These countries realize that (technology) is not an area they can cut back on as easily as other areas." Indeed, Dell - the top direct-seller of computers - has defied gravity in Asia, most recently posting second-quarter sales growth in such hard-hit areas as Japan. Dell did acknowledge that the companhy is tarting with a relatively lower market share in some foreign markets, making initial fast growth is easier to achieve. In a question and answer session, Dell defended his rock-ribbed support of Intel Corp. (INTC) and Microsoft Corp. (MSFT), both subjects of antitrust investigations. Dell has been unwilling to break from using Intel as its exclusive provider of computer chips - unlike competitors IBM and Compaq, which have used alternative chips from Advanced Micro Devices Inc. (AMD) and others. Dell says he's stuck with Intel because the alternative suppliers haven't been competitive. "We are not a subsidiary of Intel or Microsoft and we do not do things on behalf of their shareholders," he said. Dell's strategy is not "Intel-only or Microsoft-only," he explained - it's "profit-only." In part because of Dell's reluctance to go with cheaper components, the company hasn't participated in the sub-$1,000 PC market. But Dell did say that the company's prices have come down - notably for notebook computers, in part to stimulate demand for them. Dell explained the notebook PCs tend to have higher average selling prices than do desktop computers, and people tend to upgrade laptops more often than desktops. "We're interested in converting desktop users to notebooks," he said. from today's on line wall st journal jhg