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

To: jhg_in_kc who wrote (79926)	11/13/1998 2:23:00 PM
From: Mohan Marette	Read Replies (3) \| Respond to of 176387

I don't know about Kumar or the other pundits. jhg: I think for Q3 Dell derived 65% of its revenues from Desktops,14% Enterprise,22% from Portable and 7% from non-system sales(periperals etc). Changing nature of the product Mix. What I see Dell doing here is that they are concentrating on higher margin products 'coz Desktop price and margin have been falling not only for Dell for the others as far as I know,this strategy makes sense to me perhaps not to Kumar and his buddies.If you notice the % of growth in desktops has been falling while growth of the other higher margin products have been increasing consistently.Well I hope you know what the strategy here is don't you? Another thing to remember is that the size of 'pie' is also growing larger for Dell,all this naturally will have an effect on % of growth for each products.I for one don't mind a bit if the % of growth for a lower margin-product is falling while growth of the other high-margin products are increasing. Makes sense to me but what do I know I am no pundit.<g> You can find all this from Dell's web site-go to Fact Sheets.

To: jhg_in_kc who wrote (79926)	11/13/1998 6:12:00 PM
From: Thomas G. Busillo	Read Replies (1) \| Respond to of 176387

jhg, part of the game our "martyr for truth" is playing is basing his Monday's "claim to fame" on desktop unit shipments. Units. Not revs. Not earnings. The guy damn well knows DELL doesn't have a sub-$1000 desktop and whereas almost 100% of DELL's unit shipments are most likely now out of the box and on people's desks, its competitors were shipping product to the channel during a period which included the back to school season and somewhat of an "inventory snapback" from the 1st half of the year. Yet, he managed to define the battle ahead of time in terms of units knowing fully well that people on deadline aren't going to scratch there heads and think "yes, but if you look at market segmentation trends in the desktop space, their ASP's and margins, and then also consider the possibility that they can maintain growth at the high-end at a rate that compensates for the drop-off..." No. That's dry and it takes time. They want "instant sexy copy". I mean look at Eric Moskowitz. After he wrote that article last night he's probably there leaning back in his chair thinking, "This is a damn fine piece." ...when all kidding aside about his ridiculous Woodrow for Kumar, what he's produced is "communications that serves the communicator's need to produce communications". And if I have to take the GRE's and enter a Ph.D. program in Communications, Philosophy or Semiotics just to make better sense of whatever it is I'm scratching at here - I might just do it. Now that really would be "drastic" <g> Good trading, Tom

To: jhg_in_kc who wrote (79926)	11/13/1998 6:50:00 PM
From: Chuzzlewit	Respond to of 176387

jhg, this is just plain wrong. Here's the analysis: Dell's total revenue last quarter was $4,331 MM of which 66% derived from desktop sales. That amounts to $2,858MM. This quarter total revenues were $4,818MM, of which 65% derived from desktop sales. That means $3,132MM in sales were of desktops. Now, according to my calculator that indicates a sequential increase in revenues of 9.6%. What we don't know is the ASP of desktop units, so we can't talk about units with any certainty, but we do know that average desktop unit pricing decreased during the quarter (compared to last quarter). My conjecture is that if these numbers were adjusted to reflect units sold we would discover that the increase was over 10%. I've often contended that analysts don't analyze. The seem to be incapable of performing the simplest mathematics. Yet these guys' opinions drive markets. Go figure! <VBG> TTFN, CTC