Hi Kemble:
Keep the news coming. A good job of putting things in perspective.
Should explain this deals with the future, not the immediate price of Dell.
IMO the future is here, now many TV ads say visit our WWW
site, entire newspapers available on the Web. Going to run out
of bandwidth soon. Build build build.
MSD saw this coming, spent past two years getting ready with all those new factories, building sites. Hiring 50 people day in China? Is that correct, I mean they had only 300 to 350 employees there a short time ago.
Parts shortage hurt Dell Naahhhhhhhh, I read where Dell and Compaq have first call on production. Its E machines and the white boxes,
freebies, they get hurt.
Lets assume the cost of building one of those "free" machines cost goes up $100 ( if they can even get the parts). Now either the ISP has to raise their charges by $33/year plus interest, or the manufacturer will have to accept $100 less profit on a machine they were selling for $399, $499. Max pain......
Flat screen shortage ?, well I believe that $22 (16+6)bil deal with
IBM specifically included flat screens. And if another manufacturer
cannot get flat screens to fulfill orders, what company (starting with "D"), may end up added new orders for portables?
Short term effect on Dell? Uncertain. Long term beneficial
as companies will learn the value of dealing with a reliable
supplier.
Regards
Sig |
