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

To: Jock Hutchinson who wrote (99928)	2/16/1999 12:36:00 AM
From: Chuzzlewit	Read Replies (1) \| Respond to of 176388

Jock, I will try to get the industry-wide figures for you (it might take a bit of digging) but I did generate those numbers for two of Dell's competitors on a sequential basis. Let me just summarize the average over the past four years: CPQ averaged an increase of 22.0% sales increase Q4/Q3, GTW 31.9%, Dell 14.9%. This year CPQ is 23.5%, GTW is 27% and Dell is 14.2%. Thus, there seems to be nothing extraordinary about this year. ASPs have been moving down much more slowly than Dell's competitors' ASPs. But ASPs have been eroding, and will continue to erode. That is the nature of technology from the inception of the transistor. If you are really arguing that Dell's growth has been slowing and will continue to slow, I agree. That is a mathematical certainty. But the slow down will be gradual, and I expect that Dell will continue to migrate into areas where it has little presence (like storage) and thus buffer the inevitable decrease in growth rates.