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

To: TechMkt who wrote (112537)	3/26/1999 12:39:00 AM
From: stockman_scott	Read Replies (1) \| Respond to of 176387

<<The average price of Dell's computers is above $2,200, much higher than the rest of the PC market, according to a number of sources. It is a not a total surprise then, that Dell generally ships more DVD drives than the rest of the industry. The cost for PC makers to upgrade to DVD is around $50, and for consumers it's near $150, estimated Ted Pine, an analyst at InfoTech Research.>> Fez: Thanks for posting the great CNET article. DELL carefully targets the techno-savvy consumers. They are willing to pay a little more for a high quality custom built machine. DELL also seems to know how to sell alot of the high margin add ons (like DVD). Hmmm......Those folks down in Round Rock seem to know what they are doing !!! Regards, Scott

To: TechMkt who wrote (112537)	3/26/1999 9:31:00 AM
From: Mike Van Winkle	Read Replies (4) \| Respond to of 176387

Bears, Get a grip on it. When dealing with high tech, like buying PC's, you can't evaluate your PC needs and the price you should pay by looking at yesterdays requirements any more than you can drive your car by looking out of the back window. Todays ultra cheap PC's for instance don't come with DVD's, their memory is low, their displays are substandard and what about tomorrow when you want to upgrade? Remember Packard Bell when you wanted to add anything? Plus, who will help the unfortunate cheapster for free, who wants to upgrade to broadband next year, (that all these investors are jumping into). Consumers have no trouble paying for what they get and for many years to come will be wanting more from their PC and more PC's. The future requires upgrades (provided by Gigabuys) and new forward looking PC purchases, at the best price (from www.Dell). Here are a couple of links for articles that have probably already been posted by the search engine gun slingers like FezKoprucu or Mohan. Cheers news.com Sub-$1,000 PCs stifle DVD growth news.com; Many would pay more for PCs

To: TechMkt who wrote (112537)	3/26/1999 11:22:00 AM
From: PAL	Read Replies (4) \| Respond to of 176387

Fez: Great article. What the analysts failed to realize is that there are 2 different markets: the cheapy PC's and the quality PC's. Just like first time home buyers: there builders for these people. The house is small, the carpet is the lowest quality, lots of posatge stamp size, etc. When these people move up they will buy bigger house, more quality, more options etc. The homebuilders for this market generally do not build startup houses. Now we have e-machines and packardbell. Their computers are for the first time buyers of computers, maybe for their children, and maybe for accessing the internet (if you only want to spend $ 600 for a computer, would you be willing to spend $ 250/year for the internet?). Some of these first time buyers will realize that they need more speed, larger storage, DVD, etc because among others the kids demand more from the computer as the games are more demanding for resources. They will upgrade the computer, more savvy than before. They will not just pick pre-packaged computers, customed built etc. Where will they go? Dell and Gateway. Dell 's market is not that first time buyer. Let e-machines type companies serve them. As a matter of fact let those companies supply bicycles with training wheels. Dell's market is the corporate and business users, servers etc, and for consumers who longer need training wheels. Kevin of Dell already said that Dell is not interested in that low PC, just like Dell is not interested in competing in the mousepad market. How about that analysts? Sadly, those overeducated young graduates who work for wall street are more theoritical than practical. paul