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

To: Mohan Marette who wrote (117053)	4/13/1999 4:24:00 PM
From: gnuman	Read Replies (1) \| Respond to of 176387

Mohan re: (and this is my point in case you are interested) I'm interested in any ones point if they have an open mind. Notice I didn't say anything negative about Dell or it's business model. I did infer that they're getting caught up in PC price erosion in both the consumer and business segments. This will get worse as company's continue to fight to maintain share, even at the price of further margin reduction. Happens all the time in commodity businesses. We'll see more consolidation, but the company's that can afford to, or have to play the game will stay in it. (But at what cost?) Because of it's size China makes a tempting target, and one that it's easy to "spin" numbers around. I'm referring to the guy at Dell who stated, "China - currently the fastest-growing PC market in Asia and soon one of the world's largest." Does he think China will soon buy more PC's than the US? (I think just the replacement market in the US will be an order of magnitude larger than China for years). Probably the main reason I may be wrong is if company's are willing to sell PC's for $300 in China. (And this could happen). Is this Dell's kind of business? Doesn't China represent the ultimate market for cheap PC's? Microsofts involvement in fostering set-top devices for the China market shouldn't be discounted. The Chinese government is a willing partner. They also see this as the fastest way to get the population on the net. And there are many company's taking this approach. It wouldn't surprise me if Intel goes after the risk chips in these devices with a version of StrongArm. AMD has already targeted these boxes. (And I'm sure we'll see versions of MIP's chips). In fact, I just read where another company has entered the fray. Number of Internet Users to Explode as Chinese Can Lease Set-Top Boxes for Inexpensive Internet Access biz.yahoo.com If you want to look at China as a market you really have to delve into the demographics. It's a lot different than what Dell is used to. Are set-tops the answer in China? The answer is important. (And I'll try to keep an open mind to anything you have to say)