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

To: Gabriel008 who wrote (109905)	3/17/1999 11:39:00 PM
From: SirVinny	Respond to of 176387

Gabriel, thanks for your response. I've heard the same rumor but it doesn't make sense to me. At first thought, gabriel, i agree with you, it doesn't make sense. But after giving it a second glance it begins to make more sense. From the information I have gathered from sources much more knowledgeable than me on this matter, it seems IBM might want out of the PC business. Reasons cited range from dwindling market share, to eroding profits, to mismanagement. Now, if IBM wants out who will take over? Rather than simply closing shop and foresaking the years of effort that have gone into achieving sales of 10 million units/year, why not enter into an agreement with another company (DELL) which would pick up the slack. Turning over the keys wouldn't occur overnight. Rather, it would be a gradual transfer of production to DELL over the course of say 1 to 2 years. In exchange for handing over production to DELL, DELL would purchase the components from IBM. Thereby, IBM rids itself of the less profitable side of the business while securing a $17 billion dollar deal with DELL for components &technology. Dell, on the other hand, will increase its market share. While being selective of the product line it assumes, it will exclude the sub $1000, which in my opinion are loss leaders and not viable. Regards, SirVinny