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

To: Jock Hutchinson who wrote (107065)	3/4/1999 12:57:00 PM
From: edamo	Respond to of 176387

jock...re dell..tech supplier to business... were you and i discussing about a week ago your doubts in dell's business model(#105422)...your concerns were of their ability to maintain supply channels...hope your concerns are clear and you are long dell..it is a dynamic situation...good luck ed a.

To: Jock Hutchinson who wrote (107065)	3/4/1999 1:42:00 PM
From: jhg_in_kc	Respond to of 176387

This from the IBM board-- Author: KirkL (Kirk Lindstrom) Date: March 4, 1999 7:59 AM Subject: IBM - Dell Deal? I was just commenting to someone last night that DELL really has no R&D cost and I was wondering what they would do to remain competitive as others learn to assemble boxes as well as they do. Especially since HP will put much of its R&D into the smaller company and leave the box part with less overhead so it can compete... Without R&D, Dell really is not "high Tech" and will have a hard time delivering growth over the long term. Teaming with IBM seems like a good answer: For IBM, I wonder if they will eventually have Dell assemble their PCs or just private label Dell PCs? -------------------------------------------------------------------------------- By DAVID E. KALISH AP Business Writer Story NEW YORK (AP) - Dell Computer Corp. (Nasdaq:DELL - news) will buy $16 billion worth of equipment from International Business Machines Corp. (NYSE:IBM - news) under a seven-year deal that also calls for the companies to jointly develop new computer technology. The announcement of the agreement today sent the stock prices of both companies higher. The deal initially calls for Dell to buy equipment from IBM including disk drives, flat-panel displays and memory chips. The companies eventually expect broader sharing of technology, including co-developing new products. Computer makers are under intense pressure to shave costs and become more efficient amid a price-cutting war that has hurt even Dell, the fastest growing maker and the No. 2 manufacturer of PCs behind Compaq Computer Corp. (NYSE:CPQ - news) Dell said the deal will help the company boost its competitiveness in notebook PCs, storage products and servers, which are powerful corporate machines that run networks of PCs. Round Rock, Texas-based Dell reported last month that its fourth-quarter sales fell short of Wall Street expectations as it was hurt by rivals who bid more aggressively for corporate customers. Armonk, N.Y.-based IBM, the world's largest computer company, has been struggling for several years to lift sluggish sales of PCs and squeeze more profits from machines that have plummeted in price.