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

To: John Hauser who wrote (113136)	3/29/1999 11:16:00 AM
From: Mohan Marette	Respond to of 176387

John forget about it,the guy knows not what the hell is talking about,just wasting bandwidth just like I am right now.<g>

To: John Hauser who wrote (113136)	3/29/1999 11:28:00 AM
From: hdl	Respond to of 176387

1. Yes, for a long time in some instances. But, very soon someone will sell many computers for under $500 at a profit. The computers will get much better and even cheaper. In a couple of years computers comparable to those Dell now sells for $2,000 will be bought for $500. 2. Yes. But, they are also price sensitive. Mc donalds makes lousy hamburgers, but they sell many more than a restaurant that sells a good hamburger for over $5. People buy many more cheap cars than luxury cars. People buy much more from Wal-mart and the supermarket than from a luxury store on Madison Avenue or a gourmet shop. The wife of the president of Corel buys a dress for $1,000,000. Most buy very cheap clothes. 3.Large companies buy mass market goods. They are lean and mean. A $500 computer is or soon will be much more powerful,dependable, economic to run,usable, maintainable-not requiring a special room or special technicians or special software,-than a $1,000,000 computer was 30 years ago. Most companies will get for most of their workers what is appropriate for them. Someone will make a below $500 computer satisfactory for big corporate environment.

To: John Hauser who wrote (113136)	3/29/1999 11:36:00 AM
From: hdl	Read Replies (4) \| Respond to of 176387

4. Component makers will continue to sell more components as computers continue to get cheaper. They will seek to sell them profitably. Their prices will continue to come down as volumes go up and technology improves. 5. Everything is relative. Dell hopes to sell a lot of computers to consumers directly and perhaps thru resellers. Its sales to businesses will be affected by sales of computers for $900, $800, $700 and less. 6. eMachines I believe is only selling computers for four months. Someone will be selling inexpensive computers to big corporations and big government. The air force has been known to overpay for items because of their procurement fiascos. Al Gore and others claim they will fix that. My first cousin's first cousin was secretary of the air force, then secretary of defense-no lie. 7.Even some Jews would do the same. I don't know you-but it doesn't surprise. People are buying the new beetle because they think it is cool-there was marketing hype.

To: John Hauser who wrote (113136)	3/29/1999 12:18:00 PM
From: Eggolas Moria	Read Replies (2) \| Respond to of 176387

<<1. Can a company continue to exist if it's not making any money on the products it sells?>> Not sure what relevance this has to eMachines since they claim they are now profitable. <<2. Do you believe that consumers are "quality oriented?">> 2. Consumers are not solely quality oriented. There is a trade-off between quality and price for a large number of consumers, which is why the CR best buys traditionally are not the highest-quality, most expensive items. <<3. Do you think that large companies are going to purchase equipment with the impression that not only are they of a lower quality, but technical support systems have not really been established.>> For the most part, you're implicit position here is correct. However, as I mentioned elsewhere, eMachines is not positioning itself in the large corporate marketplace. Period. Let's make clear what I believe is one of the battlegrounds. As expressed by Michael Dell on several recent occasions, DELL sees the small business area as a major growth vehicle for pc sales in the future. Small businesses are beginning to gravitate towards lower-priced CPU's based upon Intel's Celeron processor. In that field, the DELL line, IMO, is markedly more expensive than items offered by IBM, CompUSA, Hewlett Packard and eMachines. That really has been my comment here for the past week or more. Now, you can believe that DELL will continue to price its Celeron line at a premium to the market and do well, or you can believe that at some point they will respond to a competitive threat with better relative price/performance systems and doing so may or may not have a small, dampening effect on their overall growth rate. I don't have the answer. I believe that DELL is monitoring the situation carefully and trying to determine what to do. But that's about all I can say about this matter with reasonable certainty.