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

To: Venkie who wrote (121310)	4/29/1999 10:16:00 PM
From: Ian@SI	Read Replies (1) \| Respond to of 176388

Some typical Barron's Fare.... The Price is the Brand "The enemy of my enemy is my friend." Who said that? Was it really Mao Tse-tung? Whatever. But for direct-sales PC makers Dell Computer and Gateway, that enemy is Emachines. The new kid in town has been wildly successful hitting up middle America, forcing the two superstars to take note -- and, perhaps, cut prices -- based on some new demographic trends. In a clear contrast to Dell and Gateway's rehearsed, harmonized delivery here Wednesday, Stephen Dukker, CEO of the cocky newcomer (which is profitable and number four in retail computer sales in a mere four months, according to PC Data), calls his company the Wal-Mart of the PC world. He delightedly told investors at a panel discussion at the Hambrecht & Quist conference that 51% of his $399-$599 machines go to first-time buyers, who can't shop online, anyway. And 69% of those bare-bones machines end up in households that have annual incomes between $20,000 and $34,000, traditionally a tough market for PC makers to crack. And word-of-mouth referrals help establish loyalty. Clearly flustered, CFOs John Todd of Gateway and Tom Meredith of Dell made noises about brands, broadband, service and sustainable profits. It's interesting to note that these two began as the low-price upstarts taking on the industry giants. Are the tables about to turn on them?