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: edamo who wrote (113903)	4/1/1999 6:19:00 PM
From: OLDTRADER	Respond to of 176387

RE:Edimo:Excellent.wbm

To: edamo who wrote (113903)	4/1/1999 8:33:00 PM
From: Mike Van Winkle	Respond to of 176387

It would seem that although IBM lost 1 billion on the box end, they could have made up for it on their parts end with a net gain, plus service contracts/consulting. The argument is the gain to IBM would be in higher profits if someone built the boxes with IBM parts and gave contract leads to IBM service, consulting. I agree that Dell would have no reason to market, brand their PC's as IBM, then give IBM other business, IBM could go pound salt. This is just IBM bargaining. Dell This quarter is helping IBM see the light with cutthroat aggressive pricing, factory plan announcements, and plans for service/consulting revenue growth from low teens to 30% from outsourcing. What a dance is unfolding. Attrition will work to a point, IBM outsourcing with IBM parts to low quality competitor who pays royalty to IBM will fly like a pig. IBM's channel will get Dell boxes like any other Dell direct customer and like it for obvious reasons. IBM will have to compete for the parts too, or specify for a price. IMVHO, MVW