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

To: Chuzzlewit who wrote (130765)	6/3/1999 4:15:00 PM
From: edamo	Respond to of 176387

ctc...margins and dominance thanks your eloquence....this is the point i tried to make to kemble, about a dell strategy to drive out competition by lowering prices...ultimate spiral down of margins, that even if you are the only player, hard to regain....in essence it is the style of amzn, get the whole wide world as your market...and when you are dominant, you must question the achievement...if price is all that a company has to offer to gain market share...they should become introspective of why.... honestly, and perhaps to the chagrin of many, i would like to see ibm and dell merge......would make sense for both...not sure how much more dell can achieve as an assembler, in the sense of growth, at some point you run into a wall.... take care, and hope all is well...ed a.

To: Chuzzlewit who wrote (130765)	6/3/1999 4:23:00 PM
From: freeus	Read Replies (3) \| Respond to of 176387

Please, what does "the product is fungible" mean? Freeus

To: Chuzzlewit who wrote (130765)	6/3/1999 5:11:00 PM
From: BGR	Read Replies (1) \| Respond to of 176387

CTC, Even I agree that it is an impossible challenge to fulfill. Given that, I would be happy if DELL were to maintain margins by moving higher up in the server/storage domain and not try to generate a lot of revenue and very little earnings from the lower end (free PCs and all). IOW, I would prefer DELL to act as INTC in the 80's when it quit the memory business altogether and concentrated on the higher margin CPU business. -BGR. PS: I do not quite agree that in the business segment PCs are fungible, yet.

To: Chuzzlewit who wrote (130765)	6/3/1999 5:12:00 PM
From: Ian@SI	Read Replies (1) \| Respond to of 176387

CTC, I believe that Dell has the lowest cost structure for building PCs (at least among the top 5). e.g. - IBM with the highest prices lost nearly $1B last year. It would seem to me that Dell would fare best in a price war. ... not that I'd like to see one. It's just that the other suppliers know that Dell will remain profitable longer than they will. As long as Dell remains the least cost producer without a monopoly share, they can make their numbers by reducing prices. The trick is for them to innovate sufficiently to keep their prices and margins up. JMHO, Ian.