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

To: Boplicity who wrote (77855)	11/10/1998 9:10:00 PM
From: Mohan Marette	Read Replies (3) \| Respond to of 176388

You ain't seen nothin' yet my friend. Greg: What came out of Intel today is nothing wait till you hear the press conference on Friday,you hear me Friday,right after Dell's earnings-How's that for a one-two-punch. Now let's look at some facts here that came out today from Intel,as you know the events at Intel is a leading indicator of how well DELL is doing so you do the math and tell me the results as I am not all good at it. BTW did I tell you I am going 'Dee-neee-land' very soon. Anyway where is that goof-ball from Merrill Lynch?????? ====================================== ...................... (1)Gross margin, or percentage of revenue minus product costs, will surge a whopping two percentage points above the 53 percent in the prior quarter. (2) The company is having great success, analysts said, with its Celeron chip designed for low-cost PCs as well as with its Xeon chip, designed for heavy-duty computing. (3) The industry is gearing up for the holiday shopping season -- its strongest period of the year -- and companies are snapping up new models that just came out in August. Moreover, contrary to popular opinion, there is good growth in higher-end PCs that have faster chips, more memory and better performance. ''Demand for PCs above the $1,000 level is pretty strong,'' Slinn said. ''Customers aren't just buying the cheapest of the cheap.'' Intel's news follows bullish comments made by Paul Otellini, head of Intel's business architecture group, during a speech at Oracle Corp. (Nasdaq:ORCL - news)'s OpenWorld conference in San Francisco. He said there was strong demand for the Celeron chip and that Intel expected to double unit shipments of the Celeron chip in the fourth quarter from the third. That would be up from the three million to four million Celeron chips Intel shipped in the third quarter, estimated Bill Milton, an analyst at Brown Brothers Harriman & Co. 4) Otellini's speech also underscored Intel's aggressive push to sell more of its top-of-the-line Xeon chips into the high-end computing market. Those processors, which now run as fast as 450 megahertz and are expected to reach speeds of more than 600 megahertz by the second half of next year, are the brains of powerful server computers that manage and process data on corporate networks. ''Xeon shows Intel's move into the high end,'' Milton said. ''Xeon is quite competitive'' with other chips that run server computers using the Unix operating system, which powers the most sophisticated machines. ***********In his speech to thousands of information technology professionals, Otellini said Xeon chip sales were growing 1.5 times faster than those of non-Intel architecture chips.********* ''The foundation of the new computing industry is quite clearly moving to Intel,'' Otellini said. In an interview after his speech, Otellini said the Santa Clara, Calif.-based chipmaker was no longer having trouble meeting demand for Xeon, as it was in the third quarter. ''We're no longer supply-constrained,'' Otellini told Reuters. ''How many thousands would you like to buy?'' ............... ''Japan is kind of picking up,'' Otellini said. ''We're getting some sequential growth again, which feels good.'' Japan is mired in its first recession in years, and PC growth there has slowed precipitously. Asia, including Japan, accounts for about 25 percent of the world's PC sales. ***''Unit shipments to China and India are holding at their current growth level,'' Otellini said. While Japan, Thailand and Malaysia have seen demand wane, sales in China and India have remained the fastest-growing for Intel in the Asia region.****** ''All segments of the PC market are doing pretty well right now,'' Milton said.