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

To: Chuzzlewit who wrote (116126)	4/10/1999 11:11:00 PM
From: Meathead	Read Replies (1) \| Respond to of 176387

An incremental deal, yes, I knew that's what you meant. I'm grappling with issues like capacity, profit potential enough to cover the cost of ramping up of new facilities etc. For instance, Let's assume Dell has no extra capacity and would need to build. Does anyone know what the initial investment to bring on line a facility that could build 600,000 systems per quarter be? And, what profitability structure would be needed to re-coup these costs within 6, 12, 18, 24 months. Or, is the land, building, equipment and staffing costs so cheap that it's a don't care? Does anyone know what the Penang site cost to bring up? MEATHEAD

To: Chuzzlewit who wrote (116126)	4/10/1999 11:21:00 PM
From: Eggolas Moria	Read Replies (2) \| Respond to of 176387

Initially, at least, IBM is going to try to fight DELL on the Internet with a 48 hr. turnaround. I don't know if they will be successful, but it doesn't appear to be a move by a company contemplating outsourcing production to DELL. "IBM also plans to get products to customers much faster. The company will expand a program dubbed Quick Step, which guarantees delivery within 48 hours. So far, the program is available only for memory chips, disk drives, and other products to upgrade PCs. Anderson says IBM will broaden the program by yearend to handle about 1,800 products including PCs, notebooks, and servers. He says customers using Quick Step will be able to process an order within 20 minutes, vs. the 48 hours it takes for an IBM salesperson to do that and get the customer a shipping date." BW