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

To: yard_man who wrote (103147)	2/19/1999 6:31:00 PM
From: Chuzzlewit	Read Replies (1) \| Respond to of 176387

Tippet, think I'll wait for the next IDC reports to form an opinion. Resellers have been getting hit because of the move to try to sell direct. Didn't IM start a line of white boxes? Maybe those weren't met with much enthusiasm in the market place. On the face of it CPQ had a nice sequential bounce but they sell via channels, so who knows? It will be much easier to assess after next quarter's results are in. GTW showed a nice bounce in units sold, and they are selling direct to the retail market. Why would Michael Dell admit that he had been too slow going after the lower priced markets, if he didn't think that is where future growth was going to be? I don't recall an "admission". I could be wrong, but my sense was a reassessment. The issue is not growth in units, but growth in profits. It makes little sense to enter a market place with little or no profit. Frankly, I'm not thrilled with the idea because it could well be aimed at first time buyers with little or no computer skills. That could wreak havoc on customer service people. Maybe they would need a manual the read like Dick and Jane Buy A Computer The speciousness of the argument is in neglecting seasonal trends. What is inescapable is that Dell had the smallest Q4 sequential increase since 1995. My belief is that the revenue "shorfall" was the result of the failure to be aggressive in pricing, rather than a fall off in demand. In any event, time will sort this out. TTFN, CTC

To: yard_man who wrote (103147)	2/19/1999 7:56:00 PM
From: Mohan Marette	Read Replies (2) \| Respond to of 176387

Dell & Sub $1000 Tippet: I don't know whether Dell will or will not get into this segment of the business but one thing is for sure if they do they won't do it just to increase market share and revenue alone.Also note a company by definition is supposed to be a dynamic entity and as such change is inevitable and desired as opposed to stagnation,status quo and premature demise. Here is some information on the sub $1000 issue and Dell. ==================================== Michael Dell on Feb.11,1999. "In an interview five days before Dell released earnings, Michael Dell was asked whether the company had plans to branch off its current product line. "No," he said. "Not big changes there." =========================== T.R Reid Dell's spokeperson on sub 1000 while commenting recently on the issue. "..Dell spokesman T.R. Reid said that with improved, low-cost processors, including Intel Corp.'s latest Celeron chip, the profitability of low-end PCs may be changing along with their performance. "We may be able to build a way to play in there with some profitability," Reid said. "We're not interested in revenue per se, or market share per se, certainly not without a satisfactory return for our investors." ======================= In any case, some analysts aren't convinced Dell will enter the sub-$1,000 market in the near future. "I didn't really get a sense that it is something they would be going straight into," said Schelley Olhava of IDC. "They're investigating it." In an interview five days before Dell released earnings, Michael Dell was asked whether the company had plans to branch off its current product line. "No," he said. "Not big changes there." The company, which has announced partnerships with Internet service providers and cable companies in recent months, plans to announce a new offering next week in San Francisco. That, and the company's registration of dellauction.com, has fueled speculation about an Internet-related business. (Source:Austin American)

To: yard_man who wrote (103147)	2/19/1999 8:04:00 PM
From: Mohan Marette	Read Replies (1) \| Respond to of 176387

...and another thing- Does this look like slower growth???? tippet: Does this look like slower growth to you??? From the Q4 conference call:- ..Dell fared well against its closest competitors as well. In the fourth quarter, Dell experienced a growth rate that was three times Compaq's growth rate, said Rollins. Dell also gained more than two points of market share in 1998, more than the other major vendors. In addition, the company landed 50 to 60 percent of the contracts with large customers sent out for bid in the fourth quarter. "We were gaining share more rapidly than anyone else," he said. "Our growth is going to continue to exceed the market," said Dell. "In the fourth quarter, our growth exceeded the market....'