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

To: JRI who wrote (119113)	4/20/1999 9:01:00 AM
From: Eggolas Moria	Read Replies (1) \| Respond to of 176387

FWIW. Neil Cavuto interviewed Drukker of eMachines yesterday. Their business model is to NOT migrate up the food chain, but to stay at sub-$600. The reasoning is that they have far less returns at those prices. According to Drukker, the primary reason a retail channel seller gets returns as high as 10% of sales is buyer's remorse and at the sub-$600 level, buyers are much less likely to be remorseful (the prices don't change as rapidly as for the $1500 model). They are currently booked through June and need to go public. Cavuto wanted details, but Drukker demurred (not allowed to comment). He did say that going public is now a fait accompli (well actually Cavuto used those words and Drukker agreed). Very clearly, eMachines is a current problem for Compaq.