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

To: Eggolas Moria who wrote (111070)	3/23/1999 12:11:00 PM
From: Chuzzlewit	Read Replies (3) \| Respond to of 176387

Gary, Dell reported that ASP last quarter was $2,350. A drop to $1,900 implies a 20% drop in ASP. This is a clear impossibility if the product line is unchanged. But remember we need to consider what is happening at the margin. And the margin here is clearly lower-priced PCs aimed at the retail consumer. In other words, this represents incremental revenues and earnings. These are not the machines that corporate customers are likely to purchase. I believe that there are only two companies making money in the PC business right now: Dell and Gateway. With a few more quarters of pain for some of the competitors we could very well see some of the weaker players bowing out. I think we have seen two signs so far: the deal with IBM, which many believe will be a harbinger of Dell assuming IBM's PC assembly and delivery efforts, and the breakup of HWP. I believe that CPQ is in a great deal of pain right now and has no idea of how to remove the thorn from its side. TTFN, CTC