Aloha Jock. Okay, I thought that perhaps you would have "gotten it" by perhaps rereading your own posts or reading the posts of a number of others and realized that you know almost nothing about economics in the real world. For example, your comments below:
"The fact is that you clearly have no understanding of basic economics. Econ 101 states that in the absence of increased demand, an increase in price will decrease demand. It has always been that way, and will always be that way."
Jock, the very fact that you would utter such nonsense in the context of this industry reveals that it is you who know nothing about economics. Are you actually saying that there is no overall increase in demand for PC's? Or that a temporary disruption in supply of some PC components will result in decreased demand for PC's (because suppliers will raise prices)?
You reveal further your simplistic approach with the following, which I must admit I had a rather hard time untangling until I realized it lacked any internal logic!
"Precisely my point. People who do not understand the basics of supply and demand must live in a fantasy world. Mike Dell understands the basics of supply and demand, and that is why he is trying to broaden his markets, simply because the days of exponential growth on PC revenues are over.
Clearly you know nothing about simple supply and demand..."
Now Jock, just what does MD moves to expand his markets have to do with the discussion of PRICE, SUPPLY and DEMAND? What does exponential growth of PC revenues have to do with PRICE SUPLY and DEMAND? (BTW Dell's growth had less to do with exponential growth of PC revenues than exponential growth of Dell's SHARE of those revenues).
Then you have the chutzpa to actually spout the following lines:
"Edamo: Truly you are the one who is clueless. An increase in price will (all other factors being equal) result in less
demand. A decrease in price will (all other factors being equal) result in greater demand. Thus, since there appears to be a short-term increase in price (due to lower supplies of motherboards), there will clearly be less (somewhat) demand.
Of course, we are always looking at a dynamic (as opposed to static) market, wherein there is an upward shift in the demand curve throughout the world--which in turn mitigates any potential drop in demand that would result from an increase in price."
A truly convoluted piece of logic twist in which you say that "I'm right in a perfect world" in the first sentence, followed by, "But of course we don't live in a perfect world" ( I would go into your premise of "all other things being equal", but rudedog covered it nicely in his post.
My point Jock, was that given your dangerously rudimentary grasp of economics, both micro and macro, you would do well to listen and let people wonder than speak and reveal you ignorance. You also might learn a bit from the truly bright and knowledgeable posters to this thread (of which I do not count myself one-I'm still learning every day).
As for you great "call"
"Moreover, I first posted on this board almost ten months ago that the party was over for DELL-that it was about to become nothing more than a trading stock. Despite the attacks on me (led by some goof named Voltaire), the market has recognized just that."
I'm not sure if that was an attempt to lend some credence to your early pronouncements or just simple chest beating, but as I'm sure you know, you were not the only on to voice an opinion 10 months ago, that Dell needed to grow into its PE ratio. But if you actually believe that the Dell story is over... well everyone has their own investment style and opinions, don't they? Good luck to you.
Alohal
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