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

To: Skeeter Bug who wrote (116025)	4/10/1999 3:23:00 PM
From: Chuzzlewit	Respond to of 176387

Skeeter, I believe that this is company specific. Remember the argument I had with Burke about CPQ taking market share? Remember the points I made: seasonality and channel stuffing? This is exactly what I was talking about. If there were problems I would not have expected the rosy comments from Michael Dell. Did you check out the NY Times article on Compaq? The consensus is that the problem is CPQ specific, and is not shared by HWP, IBM or DELL. You can find it in the business section of nytimes.com Before you jump to any conclusions it might be well worth reading the piece. Dell is talking about unit growth of 14%. I would not be surprised to see desktop revenues stagnant this year (industry-wide), nor would I be surprised to find server revenues stagnant, but for a different reason than you might expect. Dell's entre into the server arena is nothing short of phenomenal, and Dell's much lower prices has forced the high margined manufacturers to respond in kind or be pushed out. I expect that this will probably stabilize this year and begin healthy revenue growth next year. I expect notebooks revenues will grow. So I think that 'everything sucks' is a bit of an overstatement. I think we are seeing a big shift in the market, and I think we are seeing Dell as a catalyst in the process (much as Henry Ford was a catalyst in moving the automobile to mass production). I would say the 'everything sucks if you're not Dell' may be a bit more accurate. TTFN, CTC