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

To: edamo who wrote (116996)	4/13/1999 12:08:00 PM
From: Mohan Marette	Read Replies (2) \| Respond to of 176387

DELL & IBM ed a: Interesting observation by Kumar,notice the overhead cost per dollar sales.How IBM intend to cut prices to the bare bones and compete against DELL is beyond me. "I thought IBM would eventually get out of the PC business, but it doesn't look like they're doing this. Now, it looks like they're trying to turn around their PC business," said Ashok Kumar of Piper Jaffray. "Dell has about 12 cents of overhead per dollar of sales. IBM doesn't come close to this," he added, alluding to the fact that IBM lost about a billion dollars on $12 billion of PC sales. But this isn't stopping IBM. It has been targeting Dell corporate customers aggressively, according to sources at Dell which claim that IBM has been selling at what Dell thinks are prohibitively low prices to steal customers. ... news.com