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

To: Jeff lin who wrote (71668)	10/13/1998 12:57:00 PM
From: SouthFloridaGuy	Read Replies (1) \| Respond to of 176387

Yes, DELL's mantra was that lower componentry kept their costs low. How can that still hold true now? Plus, they certainly cannot raise the prices of their computers. Hmmm...there's going to have to be some margin pressures.

To: Jeff lin who wrote (71668)	10/13/1998 5:45:00 PM
From: WBC	Read Replies (1) \| Respond to of 176387

How so ? Could you please explain your post in more detail. Thanks, WBC

To: Jeff lin who wrote (71668)	10/14/1998 4:28:00 PM
From: Chuzzlewit	Read Replies (5) \| Respond to of 176387

Jeff, I agree that this is not good for Dell. If you couple firming of component prices plus weakening of the USD this might be a hindrance to Dell, especially since it maintains such low inventories. Over the long run the question will revolve around three issues: first, whether the price increase are the beginning of a trend; second,how much pricing power computer manufacturers have; and finally, the price elasticity of demand. I haven't become bearish on Dell yet, but this is the first real piece of negative news that I've seen. I think we will need to wait for some forward looking statements from Dell to assess how much of a problem this might be. It could be mitigated to a great extent over the short run by long term dollar-denominated commitments and various hedging strategies. TTFN, CTC

To: Jeff lin who wrote (71668)	10/14/1998 9:48:00 PM
From: jim kelley	Respond to of 176387

Jeff, DELL does not purchase its components off the street. DELL because of its business model must develop on going relationships with the suppliers of its components and hard disks. DELL is a preferred customer to both the memory component and hard disk suppliers. They have to supply the components JIT. Thus there are purchasing agreements in place that provide for delivery of the components and hard drives at specified prices. Your reasoning is questionable at best. However, it is good to know what is happening on the streets. Regards, Jim Kelley