edamo, GTW's new product looks great. This is the kind of
product that Japan is really interested in right now and
ultimately where PC form factors are headed. It's definitely
cool.
The problem is the premium paid for this level of integration
and the reduced computing power penalty. The feature set is
not competitive from a price standpoint right now... that's
one reason Dell will not be the first to enter this product
segment. Here is the basic problem:
Gateway Profile SE Dell Dimension XPS T
CPU AMD K6/400 PIII 450Mhz
Memory 64MB 128MB
Monitor 15" TFT 17" Sony Trin
HD 4.3GB 9.1GB
CD/DVD 24x 40x
Video 2x AGP 4MB 2x AGP 16MB
Audio Integrated wavetbl Soundblaster
Speakers Integrated Altec ACS340 w/sub
NIC 3com 3com
OS Win98 Win98/NT
SW MS works/encarta MS SB office97/encarta
Zip drive No Yes
Warranty 3yr 3yr, 1yr nextday onsite
Price $1,999 $1,821
Not really competitive. In fact, a similar config from Dell
would only cost ~$1300 placing a $700 premium on the GTW machine.
Dell offering this product at this point in time wouldn't add
much to bottom line. Also, Gateway OEM's this product (i.e.
they didn't design it in house, just testing and qualification
which only requires about a 3 month development cycle), Dell
would do the same if they wanted to offer this product today.
I don't think enough of Dell's customers are requesting a product
like this right now (save Japan, but cost is still a major issue) or
they would definitely have an offering in this form factor. How Dell
is addressing this desire for a space saving product is by rolling
out their new ultra slim chassis designs. There is no cost
premium to the customer for this and Japan, from what I hear,
loves this new form factor/same price strategy.
I as a shareholder, don't want Dell to offer advanced technology
without a proven/established market before any competitor. That
becomes an unnecessary higher risk category for R&D spending with
a longer timeframe for recouping the costs.
Still, that's one cool looking machine. I like it.
MEATHEAD
|
