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

To: Dorine Essey who wrote (127488)	5/20/1999 10:16:00 PM
From: AlanH	Respond to of 176387

Dorine, thanks for the IBM/DELL article... Interestingly, DELL seems to be poised in that 'middle' space, described as, "a very competitive business with mass-market products (commodities)." This suggests that margin pressure will intensify as competitors improve process toward reduced cost-of-sale and inventory. Of course, DELL will attempt to differentiate product and broadly target markets. [An example is in human verification/recognition; that is, verification that the person at a remote workstation is who they suggest -- entitled to associated rights and access.] However, few DELL exclusive "features" have been seen to-date. (I'm talking about product features, not service or reliability.) The endgame is that DELL can only reduce cost-of-sale, inventory, economy-of-scale so far -- without radically shifting the business model. BTW, DELL appears to be investing in a moderate shift now... at the risk that its "top-line" could be impacted by Y2K spending. It'll be interesting to watch. AlanH