1.   By keeping inventories down, direct sellers can immediately pass on the savings when component prices fall.

2.   As component prices have fallen, Dell has aggressively cut prices to increase sales.

3.   At the same time, it keeps few parts on hand so it can benefit from drops in component prices.

4.   Companies with low inventories can capitalize on lower component prices by rapidly integrating the cheaper parts into their products.

5.   Computers have come down in price over the past year, said Parker, mainly because of drops in component prices.

6.   Dell Computer said yesterday that declining component prices was part of the reason for better-than-expected first-quarter earnings.

7.   Dell Computer Corp. shares surged to a record high after the personal computer maker parlayed falling component prices into second-quarter profit that exceeded the most optimistic forecasts.

8.   Dell said yesterday that declining component prices was part of the reason for its better-than-expected first-quarter earnings.

9.   Dell, based in Austin, Texas, has used its direct-sales business model to pass the savings from tumbling PC component prices along to customers.

10.   Ford, Chrysler and General Motors Corp. also are asking suppliers to keep components prices flat this year as the automakers try to reduce spending.