To: Chuzzlewit who wrote (105360 ) 2/26/1999 3:13:00 PM From: Jock Hutchinson Read Replies (8) | Respond to
You make an excellent point, and as a shareholder in LSI, I am painfully aware of the often fruitless expenses that made in R&D--specifically LSI's investment in ATM R&D, which has provided virtually no returns. Moreover, I certainly agree with your assessment of DELL as the premier light assemblage company in perhaps the world and certainly in computer assemblage. But the DELL model has only been tested during an era of falling component prices. In an era of increasing component prices, the DELL Model could fail dramatically . Indeed, during a time of shortages in component prices, the DELL model fails completely, and that is the sort of debacle that potential corporate customers would not soon forget. For that matter, neither would the average consumer of DELL's new sub $1000 computer.
