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

To: edamo who wrote (113987)	4/2/1999 1:51:00 PM
From: Chuzzlewit	Read Replies (1) \| Respond to of 176387

Ed, I think the problem is larger than the sub 1K market. The sub 1K market was responsible for the eventual cannibalization of some of the retail and small business customer. So total gross profit fell, which means a lower contribution to overhead. Another part of the problem is pricing pressure. The common denominator of all of those companies is sales through channels. That creates additional cost to the consumer which means that, all other things being equal, the manufacturer ends up keeping a smaller slice of the pie. Finally, we have plain old asset efficiency that is made possible only by stringent inventory control. Not only does this free up capital, and reduce costs, it eliminates inventory risk which is precisely what companies like CPQ face in oversupply to their channel members. And they have little choice about it because retail stores must have merchandise that exceeds demand. That means that after the peak selling period (Q4) excess channel inventory must, perforce, come back to the manufacturer or he has committed the unpardonable sin of not meeting demand and losing a customer to a competitor. That's why I like Dell. TTFN, CTC

To: edamo who wrote (113987)	4/3/1999 6:23:00 AM
From: Mark Peterson CPA	Read Replies (2) \| Respond to of 176387

Ed, IMO, the sub $1K computer market is going to be more difficult to service because of user based limitations, not the component limitations of the sub $1K boxes. Here's a little example of the challenge service departments of those selling to this marketplace are going to be dealing with: "Ridge Hall technical support. May I help you?" "Yes, well, I'm having trouble with WordPerfect on my new sub $1K computer." "What sort of trouble?" "Well, I was just typing along, and all of a sudden the words went away." Went away?" "They disappeared." "Hmm. So what does your screen look like now?" "Nothing." "Nothing?" "It's blank; it won't accept anything when I type." "Are you still in WordPerfect, or did you get out?" "How do I tell?" "Can you see the C:\prompt on the screen?" "What's a sea-prompt?" "Never mind. Can you move the cursor around on the screen?" "There isn't any cursor: I told you, it won't accept anything I type." "Does your monitor have a power indicator?" "What's a monitor?" "It's the thing with the screen on it that looks like a TV. Does it have a little light that tells you when it's on?" "I don't know." "Well, then look on the back of the monitor and find where the power cord goes into it. Can you see that?" "Yes, I think so." "Great! Follow the cord to the plug, and tell me if it's plugged into the wall." "Yes, it is." "When you were behind the monitor, did you notice that there were two cablesplugged into the back of it, not just one?" "No." "Well, there are. I need you to look back there again and find the other cable." ......."Okay, here it is." "Follow it for me, and tell me if it's plugged securely into the back of your computer." "I can't reach." "Uh-huh. Well, can you see if it is?" "No." "Even if you maybe put your knee on something and lean way over?" "Oh, it's not because I don't have the right angle -- it's because it's dark." "Dark?" "Yes -- the office light is off, and the only light I have is coming in from the window." "Well, turn on the office light then." "I can't." "No? Why not?" "Because there's a power outage." "A power... A power outage? Aha! Okay, we've got it licked now. Do you still have the boxes and manuals and packing stuff your computer came in?" "Well, yes, I keep them in the closet." "Good! Go get them, and unplug your system and pack it up just like it was when you got it. Then take it back to the store you bought it from." "Really? Is it that bad?" "Yes, I'm afraid it is." "Well, all right then, I suppose. What do I tell them?" "Tell them you're too stupid to own a computer." Sheeeeesh.... Mark A. Peterson