Michael Dell Demand Quotations

Our second-quarter results and expectations for strong industry demand in the second half of the year keep us on track toward our goal of 30 percent full-year sales growth. There remains tremendous room for expansion in all product categories, customer groups and regional markets, and the fundamental advantages of our direct model are more compelling than ever.

Current softness in industry demand and profit margins is not a secret, ... But in this environment, the differences between Dell and other major companies are compelling.

We see a healthy industry in the year ahead, ... Major demand drivers, including processor transitions and component cost reductions, remain solid, and consolidation is separating top companies such as Dell from the rest of the field.

We have decided to invest in India in a big way to continue our success story, thanks to the availability of the requisite talent here. The hardware unit is intended to first meet the domestic demand and target the export market subsequently.

During the first half of fiscal 1998, demand remained solid. The top companies have been consolidating their market shares during this period, and Dell has emerged from this environment as a leader in market share growth.