1.   Because Dell holds very little inventory, it takes advantage of lower component costs and is always selling a fresher product, which can command a higher profit margin.

2.   Dell cited recent reductions in component costs, such as memory chips.

3.   Dell said its profits increased in part because of lower component costs, damping shares of disk drive makers.

4.   Demand for computers has been robust and component costs are falling as parts made in Asia are cheaper to buy because of the stronger dollar.

5.   Dell said that its profits increased in part because of lower component costs, damping shares of disk drive makers.

6.   Instead, it can quickly pass on declining component costs to its customers.

7.   Lehman attributed the rise in gross margins for its computers to cost reductions associated with lower inventory levels, reduced overhead costs and lower component costs.

8.   Part of that drop reflects declining component costs, which Dell passed on to customers in price cuts to boost sales.

9.   Talk of price wars is overblown because prices for computer systems are not coming down faster than component costs.

10.   While Compaq Computer Corp. and Digital Equipment Corp. cut prices to shed excess inventory, Dell builds PCs to order and instantly adjusts prices to reflect declining component costs.