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

To: stockman_scott who wrote (129425)	5/27/1999 7:38:00 PM
From: jim kelley	Respond to of 176387

Stockman, It is in IBM's interest to sell components to DELL. Also, to figure a way to leverage their service business off DELL's computer sales. I do not see how it is the interests of DELL shareholders or DELL the company to be acquired by IBM. Even at a 35% growth rate, DELL will double in a little over two years and become the dominant PC company. They will also be in a position to challenge CPQ for market share in the server business. DELL will surpass CPQ in unit sales around the 4th quarter of this year. Moreover, DELL will do it profitably. IBM is faced with some tough decisions in the next two years. Its viability in the PC business is in question due to its loss of 1B last year. It service and components business is healthy. Even so DELL can not afford to place too much of its business in IBM's hands because it would be too tempting for IBM to squeeze them. Fortunately, there are other suppliers of components and services. It would be in IBM interest to acquire DELL but not vice versa. Consequently, I expect that IBM may get around a 1/4 of DELL's component business and the competitors will get the rest. regards, Jim Kelley