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.

Strategies & Market Trends : Anthony @ Equity Investigations, Dear Anthony, -- Ignore unavailable to you. Want to Upgrade?

To: ACS_101 who wrote (28403)	4/9/1999 11:00:00 AM
From: Syed	Respond to of 122087

ACS- I like your analogy. "dollar for 6 quarters."

To: ACS_101 who wrote (28403)	4/9/1999 11:16:00 AM
From: If only I'd held	Read Replies (1) \| Respond to of 122087

DELL, I'm not a big Dell trader, but this is what the analysts wanted to hear. Dell To Push Low-Cost PCs NEW YORK, Apr 09, 1999 (AP Online via COMTEX) -- Dell Computer Corp. plans to expand its presence in the low-cost home computer market, offsetting the lower profit margin on those machines by selling more add-on products and services, the company told Wall Street analysts. The company began selling sub-$1,000 home PCs last month and plans to have ''much more presence and aggressiveness in those lower-priced'' products, said Paul Bell, senior vice president for Dell. The company said it will increasingly offer printers, leasing plans and extended warranties, to keep the lower-priced machines from lowering profit, The Wall Street Journal reported today. Bell said early sales of Dell's $999 PC have been ''very solid.'' It began offering the low-cost model after deciding some buyers wouldn't consider Dell products because of price, he said. Rival computer makers first began selling machines at that price two years ago, and now sell some machines for $599. Dell accounts for 5 percent of worldwide home-PC sales but has seen the business expand rapidly in the last three years. Dell's recent embrace of under-$1,000 PCs continues the company's practice of avoiding first-time PC buyers, analysts said. ''Dell is following the appropriate strategy,'' Warburg Dillon Read analyst Charles R. Wolf told the Journal. ''There's no advantage to being a first mover.'' The Round Rock, Texas-based PC maker traditionally has sold higher-priced and performance machines to sophisticated buyers. Most of its home and small-business PCs have been sold for between $2,500 and $2,999, Bell said. After falling short of Wall Street revenue projections in the fiscal fourth quarter ended Jan. 29, Wall Street has expected the company to use pricing to lift sales. Dell will also expand its services on the Internet to lower its service costs, the Journal reported. Chief Executive Michael S. Dell said the company estimates it costs $3 to $8 for every call made to its technical-support center. It recently began offering self-help aids and encouraging customers to exchange technical information on its Web site. The Internet aids have reduced the number of phone calls 25 percent, Dell said. Copyright 1999 Associated Press, All rights reserved. -0- News provided by COMTEX.