Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Tim Luke who wrote (113787)	3/31/1999 11:15:00 PM
From: Ian@SI	Read Replies (2) \| Respond to of 176387

Might Dell be the 3rd party manufacturer for IBM hinted at in the following extract from ML report today???? ++++++++++++++ INDIRECT PC VENDORS ARE GETTING SQUEEZED. Indirect suppliers such as Compaq, HP, and There has to be price pressure compression. We expect to see $500 offerings from traditional vendors by the second half of this year, though with what volume commitment remains to be seen. This ASP pressure isn't good for anyone, but we think the indirect vendors are most vulnerable: Compaq, HP, and IBM. Dell has talked about moving more aggressively in the consumer space and faces issues as well but has a superior model, in our opinion. Vendors will work hard to offset price declines by emphasizing their growing enterprise businesses. We don't know if Compaq saw this coming, but acquiring DEC gives it another card to play. We prefer Dell's virtual approach to building an enterprise business since these days information is superior to infrastructure. Whether success above can offset threats below remains to be seen (Intel and Microsoft face similar issues). IBM CEO Lou Gerstner said we're coming to the end of the PC era. PCs are maturing. Lower prices and the coming of appliances are signs of that maturation. Consequently, PC stocks should increasingly be viewed as trading names. IBM MAY BE LOOKING TO REDUCE ITS PC EXPOSURE. We hear that IBM may be looking to third parties to build IBM-logo desktop PCs in the Far East and Europe. These third parties would market these PCs on their own and pay IBM a 6% royalty. If true, this would show IBM is working on reducing its losses. IBM has been doing this with Vobis in Germany for a year due to difficulty in penetrating the country.