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

To: Eggolas Moria who wrote (111261)	3/23/1999 4:40:00 PM
From: Mohan Marette	Respond to of 176387

Gary:may I suggest you look at either IDC or Dataquest report,if you can find one of them you will notice that IBM is losing market share in the PC segment.As you may know PC segment is not one of their strongholds,why else do you think they just signed a massive deal with Dell and negotiating with others to sell their proprietary technology? Looks like IBM wants to develop their OEM business more than their PC business.

To: Eggolas Moria who wrote (111261)	3/23/1999 4:46:00 PM
From: Mohan Marette	Respond to of 176387

Here is the synopsis of Q4 shipments from IDC for your reference. According to IDC, Dell's U.S. and worldwide shipments in the fourth quarter jumped 56 percent over the same quarter in 1997, compared with 21 percent for the industry in the U.S. and 15.4 percent worldwide. Worldwide, Compaq accounted for 14.8 percent of PC sales in 1998, up from 14.2 percent in 1997. No. 2 IBM slipped from a 9 percent share to 8.8 percent, while Dell closed in on IBM, growing from 5.9 percent to 8.5 percent in 1998, IDC estimated. Other finer points Point-1. According to IDC, Dell's U.S. and worldwide shipments in the fourth quarter jumped 56 percent over the same quarter in 1997, compared with 21 percent for the industry in the U.S. and 15.4 percent worldwide. Point-2 Dell executives say the company should continue to grow at several times the industry's rate, which would keep Dell on track to become a $40 billion computer company early next century. That expectation was voiced last year by Vice Chairman Mort Topfer. Point-3 Compaq retains its lead over No. 2 Dell in U.S. market share: 16.7 percent to Dell's 13.2 percent. But Dell is closing the gap. At the end of 1997, Compaq had 16.9 percent vs. 9.3 percent for Dell, according to IDC.

To: Eggolas Moria who wrote (111261)	3/23/1999 5:05:00 PM
From: BGR	Read Replies (3) \| Respond to of 176387

Gary, I doubt if it is primarily pressure from the big US companies that is pushing the ASP and margin (which is more important than ASP IMO) down. There has been price wars in the past which DELL won hands down. IBM knows this as do some other companies, of which some are possibly more irrational than IBM. But the present pressure on ASP seems to be 4 pronged: 1. AMD getting serious about losing money by undercutting INTC. 2. Emachines, Microworkz and gang getting serious about losing money by undercutting the big boys. 3. Wall Street's tacit approval to (and even preference for) revenue growth at the cost of earnings loss. 4. And finally, market share battles. The first 3 are categorically insane position, which should unwind soon. In particular if Win2000/NT5 turn out to be the memory and processor hog many expect it to be, there may even a be solid technical reason for that. That should relieve a lot of pressure from the margin/ASP frame. Then, there will be consolidations as may be forecast from IBM-DELL talk and HP's sotto voce. CPQ may stand the ground for a while more, though. This is how I see it anyway. -BGR.