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


To: Gabriel008 who wrote (109398)3/15/1999 2:09:00 PM
From: rudedog  Read Replies (1) | Respond to of 176387
 
Just wanted to weigh in on this discussion - I have very serious doubts that DELL paid IBM a 1% royalty or even any significant royalty on any machines, let alone on every machine. I am more likely to believe that DELL has discovered the secret to workable nuclear fusion power.

Why would DELL be paying IBM 1%? For what? DELL products are based on INTEL designs even when they tweak the design work, and INTEL would not design in a royalty to IBM - if so then everyone using INTEL base technology would use it. In any event IBM would not be able to relieve DELL of an obligation to pay INTEL for an INTEL license obligation to IBM.

This sure sounds like nonsense to me. DELL is not that stupid - in a business where every dollar counts, the idea of them giving a competitor $25 on every sale is just not credible. With their volume it would only make sense to fix that problem with a ground-up design.