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

To: Chuzzlewit who wrote (118507)	4/18/1999 8:08:00 PM
From: kemble s. matter	Read Replies (1) \| Respond to of 176387

Chuzz, Hi!! RE: reclaim some of the desktop losses. But I am a Dell investor. Why should I freely give my thoughts to CPQ? :o) But, the model...the model....the model... Wherever DELL moves they conquer...high end or low end...Stopping the market share erosion is a problem...thus stopping DELL...sure they have their channel problems...but, isn't it the direct model of DELL that created this? . Just picking your knowledge... :o) Best, Kemble

To: Chuzzlewit who wrote (118507)	4/18/1999 8:12:00 PM
From: TREND1	Read Replies (2) \| Respond to of 176387

Chuzz (1) Shipping on a $3,000 PC is (100/3000)= 3.3% (2) Shipping on a $500 PC is (100/500) = 20% Some thing only HAL would think about (g) Larry Dudash

To: Chuzzlewit who wrote (118507)	4/18/1999 8:13:00 PM
From: jim kelley	Read Replies (2) \| Respond to of 176387

CTC, While I agree with the reduction of COGS and SG&A at CPQ, I think it is too late for them to change the nature of their PC business. I think the should fully support their channel model and try to be efficient as possible. They can not be both direct and indirect. They need to gracefully exit the unprofitable portions of their business. Now, this may mean that their PC business will not grow as fast. But perhaps it will then be profitable. If they try to do both simultaneously they will lose in both businesses. JMO

To: Chuzzlewit who wrote (118507)	4/18/1999 8:42:00 PM
From: Mike Van Winkle	Respond to of 176387

Chuzz, I thought CPQ pushed inventory on their channel because their production methods, to meet the low margin PC price, required a large batch of PC's to be built. They would have to change their production methods to be like Dell's. Takes years of learning and improvement to manufacturing details to reach Dell's level of efficiency using Dell's manufacturing method, and life is not going to stand still (I hope that makes sense). It is not an issue of direct or indirect but starting a new business that CPQ has no experience in. Although Dell and CPQ make the same products, their businesses are completely different. If you think about it, a Dell worker that takes a 2 week vacation has to go through training before going back on the line because of the pace of change. It looks like slow checkmate to me. Mike