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

To: D. Swiss who wrote (109373)	3/13/1999 9:21:00 AM
From: TechMkt	Read Replies (1) \| Respond to of 176387

This should give DELL a nice boost next week. Fez ________________________________ VARBusiness March 15, 1999, Issue: 1506 Section: Fast Forward --------------------------------- Intel Readies Pentium III Xeon Processors David Myron On Wednesday, Intel Corp., Santa Clara, Calif., will announce the availability of the Pentium III Xeon processors. The chips will start out at 500 MHz and 550 MHz. Users can expect an increase in digital content creation performance. Additionally, the chip's memory streaming instructions will provide a boost in server-side performance in applications. Leading vendors, including Compaq Computer Corp., Dell Computer Corp., Hewlett-Packard Co. and IBM Corp., are expected to attend with server offerings based on the latest PIII Xeon processor.

To: D. Swiss who wrote (109373)	3/14/1999 2:22:00 PM
From: BGR	Respond to of 176387

Drew, I most sincerely hope that you are right and my concerns are baseless. For the time being however I feel that DELL is reacting to Wall Street latest (ridiculous, IMHO) fad of rewarding companies that prefer revenues over profit (a disastrous policy for a majority of the players in any given domain). I apologize if it seems that I am trying to turn DELL's attempt to leverage it's internet presence into a negative. My read of DELL forever has been that it owes it's success more to a superior supply-chain management implementation and less to distribution. Distribution surely plays a role, but the main bang (so I felt) came from more efficient inventory management, virtual integration with parts suppliers etc. which is harder to duplicate. For example, amazon has superb distribution too. When there is no value added in the production process, I doubt that DELL can have a clear advantage over all others in the same business. I am still mulling over the brand recognition aspect of internet shopping which others have raised. For the time being, I remain a skeptic. First, DELL owes it's success to better cost and elimination of brand locks. Second, that was 10 years back and with the internet that is even more true at present. Third, the brand loyalty may be to the producer and not the reseller. For example, if I buy MSOffice from buy.com vs. DELL, I am pinning my quality hopes on MSFT and not the reseller. In this situation, and with automated shopping bots roaming the net, I most seriously doubt if any reseller has any competitive advantage. I see DELL's future in server (perhaps Linux), storage (but I will probably hedge with an EMC position) and expansion into developing economies and not in being a low-margin e-tailer. I have maintained this position for a while now. -BGR.