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

To: Ian@SI who wrote (127219)	5/20/1999 1:46:00 PM
From: rudedog	Respond to of 176387

Ian - DELL has been making a strong play for leadership in the US corporate desktop market for a while and has been nipping at CPQ's heels for the last 3 quarters. I think they have a good shot to make it but at least as far as 1Q numbers show from IDC and Dataquest, they are not there yet. This is hard to analyze correctly since what these guys measure is sales from the factory and what counts is what customers are buying. My own attempt at seasonally adjusting and getting to sales out (i.e. sales to customers) puts DELL about a point behind CPQ in corporate desktop sales. The big question at the moment is whether this means anything for DELL's future revenue and growth. It is clear that CPQ and DELL will be the top 2 in this market and will increasingly take share from IBM and HP. This is in part because IBM and HP have moved away from a market share posture and are concentrating on profitability, allowing them to milk their account control and at least make these profitable businesses. What DELL needs to do is go after higher margin enterprise sales in this same space. At the moment they have mostly been leveraging their desktop sales to get enterprise business, but many customers continue to buy CPQ servers even when DELL gets the desktop business (for example, EDS).