Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: D. Swiss who wrote (107688)	3/5/1999 4:37:00 PM
From: Mark Peterson CPA	Read Replies (5) \| Respond to of 176387

FYI a further spin on what the IBM deal means to DELL **Dell, IBM Deal Sets New Directions - Analyst SCOTTSDALE, ARIZONA, U.S.A., 1999 MAR 5 (Newsbytes) -- By Craig Menefee, Newsbytes. The $16 billion technology alliance announced this week by IBM [NYSE:IBM] and Dell Computer [NASDAQ:DELL] is fascinating for its size, but market watcher Cahners In-Stat thinks the real story lies in the implications for the two firms and the industry as a whole. The alliance could be only the first in what may turn into a series of big moves, with implications for buyers of computers ranging from pocket-sized organizers to top-of-the-line enterprise servers, one Cahners analyst told Newsbytes. Dr. Martin Goslar, who directs the Internet Commerce and PC Market Services for Cahners In-Stat Group, sees it as part of Dell's continuing campaign to bypass Compaq as top vendor worldwide in PCs shipped. To leapfrog Compaq, he says, Dell simply had to abandon its longtime loyalty to Windows and Intel (Wintel). "We're living in very interesting times this year for PC OEMs (original equipment manufacturers) struggling to retain and expand market share growth," Goslar remarked to Newsbytes. And Dell Computer certainly is working hard to bypass Compaq to make it to number one." As a loyalist to Wintel, Dell has done extremely well, using a direct marketing model on both the corporate and the consumer side, Goslar told Newsbytes. However, he added, "It's my feeling now they're beginning to realize that the direct model, in and of itself, and the strong Wintel orientation, is not going to take them to the top seat. Like other top OEMs now they're struggling to make it through and continue to compete at the level that they have in the past." The IBM deal, says Goslar, offers Dell a single source for "a broad spectrum" of technologies, from storage to chips to displays, all from IBM. "They now have top quality technology that can be available in high volumes from a world renowned supplier with a wider array from one source than just about any other supplier out there," said Goslar. "And it offers potential to partner in the future with IBM in other market strategies." He added, "There's no doubt Dell has to take some new directions. I did a report a few months back and talked with Michael Dell. At that time he was saying they weren't about to try to compete at the low end of the PC market because it just wasn't worthwhile. And with the historical Wintel approach, the profit points just aren't there. But once they get the relationship set (with IBM), there is certainly room to look at non-Intel chipsets and develop very cost-effective products and start to take some market share at that low end." Goslar says the corporate sector is going in the same low-end direction, based on calls he gets from information technology (IT) managers asking why they should pay hundreds of dollars more than what consumers buy. "Corporate PCs are going to start dropping in price just like the consumer side has been for awhile now. It will happen this year, and Dell has to compete in that market. I think the IBM deal is going to do a lot of good for them." He predicts that servers will go in the same direction. With IBM in the picture, he says, Dell could change that end of the market. "Gee," he told Newsbytes, "can you imagine, Dell servers with 'Quality IBM Inside' stickers? Dual branding. And we're not just talking desktops and servers here, we're talking notebooks. There's a big shift happening to notebooks in the corporate side and it's happening with consumers too. And now PDAs (personal digital assistants) are becoming more and more popular on the consumer side and getting into corporations. I see a seamless PDA to DT kind of connection." He added, "Dell is really a market expert, IBM the technology guru. Put those two together, and -- bingo. It's looking good."** Reported by Newsbytes News Network, newsbytes.com . -0- (19990305/WIRES PC, NETWORK, BUSINESS/) ...and those who bought the stock earlier this week under $80 are looking very, very smart... Best regards, Mark A. Peterson