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

To: BGR who wrote (81831)	11/23/1998 12:15:00 PM
From: rudedog	Read Replies (1) \| Respond to of 176387

Apratim - As discussed by Craig Barrett in a recent interview, Intel has 2 basic models, one of which is new and designed primarily to service Dell. Intel needs to balance both models to smooth out production and they adjust pricing and delivery targets to meet that goal. The 2 models are - 1) - their traditional long term purchase agreements, where vendors like CPQ that have a more forecast-driven production model place orders for specific delivery windows on volume products. 2) a model where the buyer links intel to their demand forecasting and production systems and intel can make their own predictions about demand and make fab plans accordingly. the 2 models are merging to some extent - Dell is providing a range of demand which is less tight than the forecast model but still sets overall demand over a longer period of time, and CPQ is providing more actual real-time run rate forecasting. The particular situation at the moment probably favors CPQ slightly over Dell, because CPQ has more unfilled orders outstanding, but I don't know all of the details of the real-time demand forecasting model. My bet would be that the grey-market guys will be the real losers here, and I expect that Intel will find a way to satisfy both CPQ (because of the volume agreements) and Dell (because they want the new systems to work).