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

To: gnuman who wrote (121613)	5/2/1999 12:25:00 PM
From: Meathead	Respond to of 176387

Re: e-machines is just the distributor/marketer for Trigem. Right. That's my point. This business model can not support any market share whatsoever where Dell's sales are targeted... not even close. They are not really any competition. Their market niche is a fast growing one however and their business model is tailored to this segment. They should see tremendous gains in mkt share in this category until they saturate... or go broke. As they make impressive volume gains, expect too see many more ignorant articles about how the big boys are quaking in their boots because corporate america will 'wake-up' and realize they don't really need certified hardware, service/support, fault tolerant servers, serviceable designs or custom configuration. Just 10,000 $399 boxes will do. The reality of Emachines business model and their low prices is this: They will only be able to undercut the competition by 15%-20% for a 'similar' offering no matter if they design desktops, servers, notebooks etc. They achieve this by using cheaper components where spec's aren't easily compared like they are with the big 6.... CPU, memory, HDD, CDROM, modem, CRT. Eliminate the overhead of service/support.... testing for certification across multiple operating systems and network operating environments. Leverage one simple chassis design across all platforms.... there are many, many areas to reduce cost and compromise finished product quality and for some applications, this is fine. Many first time home and some experienced users don't want to pay the small premium for this extra stuff as they don't need it. That's well understood and why they will grow in this area. But to compete with Dell.... it would be impossible for Emachines to offer the same breadth of products, quality and service for 20% less. MEATHEAD