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

To: Chuzzlewit who wrote (116090)	4/10/1999 9:58:00 PM
From: Meathead	Read Replies (1) \| Respond to of 176387

Chuz, I have a hard time believing that Dell would only manufacture IBM designed boxes. They would be conceding the profitability of their second greatest advantage... efficient product development. If Dell only manufactured, IBM would need to recoup development costs so Dell would be essentially leasing their manufacturing facilities for a pittance. Margins on the balance sheet would really appear to get hit. Dell currently grosses about $500 per system. What would happen to that number if they only assembled systems for IBM and how might that pollute the balance sheet? Maybe it would be an easier transition for Dell to assemble IBM systems initially, but it just doesn't make sense financially. Co-development, an ASL heavy with IBM components and re-branding Dell developed IBM systems seems more reasonable. Your thoughts? MEATHEAD