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

To: Mehitabel who wrote (127876)	5/22/1999 6:45:00 PM
From: Mohan Marette	Respond to of 176387

Dell Hits No.1 in Commercial PC Sales Mehitabel: Thanks excellent find. Who Cares About Wall Street when Main Street Shows Support Daily? On Tuesday of this week, Dell Computer announced their latest quarterly results. While the stellar numbers did not satisfy a greedy Wall Street, in my mind, what really matters in Dell's numbers are those coming from Main Street. That is, the businesses on Main St. that comprise Dell's most critical customer base. Looking at InfoBeads latest numbers on who's doing well on Main Street, you see the results for Dell are even more amazing than their financial record. Based on the latest Q1 data, Dell now leads PC sales to business accounts. If we look at overall PC sales to commercial accounts, Dell has been on a tear. Over the last 12 quarters they've done a masterful job of continuing a very strong growth trend that is unmatched in the business. While nearly all of Dell's competitors have seen stagnation in their shares during this time frame, Dell has been in consistent breakout mode,and their results for last quarter were their exclamation point - No. 1! However, the most important segment to examine for Dell is larger businesses. Dell has been quite successful in taking on the major indirect players in this space, and while they achieved the No. 1 position in Q3 of last year, Compaq fought back in Q4. But Q1 is more telling. Dell continued to show strong growth, while Compaq's Q4 results look more like a blip up and less like a trend, as they fell behind Dell in Q1. Needless to say the Q2 data will be critical in understanding how the competition between these two opponents will play out . It's also worth noting that while HP and IBM also did significantly better in in Q1, their gain did not come at Dell's expense. I expect that IBM and HP will be far more aggressive in the future in big business, and if they continue to gain share, either Compaq or Dell will lose it. However, because of channel realities, I believe that given a more aggressive HP and IBM, Compaq will be the one that loses share. Our other data suggests that sales to larger firms are a bit weak early in Q2 and this will place additional pressure on these top vendors. If Dell is able to keep their shipment levels on track, this should result in an additional significant gain in their share position. infobeads.com.