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

To: Knighty Tin who wrote (104025)	2/22/1999 11:03:00 PM
From: jim kelley	Read Replies (1) \| Respond to of 176387

MB, Re: Low end server sales depend upon pc sales, and that is still heading south. You are guilty of a logical fallacy here. Server sales depend on unit growth in the PC market not on PC sales revenues. We clearly are getting the unit growth in the PC market. There may be problems with ASP's and profits for some of the companies but units sold is not the problem. Sentencing will be in May. Last time I looked the Celeron pricing was very competitive with AMD pricing. So the truth lies in the details. Incidently, DELL is not the high cost producer. DELLS cogs is 22.4% last quarter. They do well because their operating expenses are a lot less than CPQ's. Thus, DELL's total costs are a lot lower than CPQ. Hence, DELL can easily drop their prices and still make money. You need to check these things out before you assert something as fact or state that it is your opinion. JK