Rude- Legacy-free systems...are they going to have enough memory to handle Windows 2000?...or, if upgrade (in standard-issue memory) is needed...don't you think that will close/elimate much of any (major) price offering advantage these systems have vs. say, the Dimension series..
Although I see where your coming from (de-emphasis of PCs at HP and CPQ)..the genesis of this was....that neither could compete with the most efficient player (Dell) in many of the market segments...So, I am appalled at your attempts to paint these cos. as "advanced" by seeking the smarter, higher (margin) ground <G> For CPQ, HP...the PC is dead...as a matter of survival...they HAVE to seek different, higher ground.......Now, of course, that is a good thing (for them)....but, for Dell, the PC is not (entirely) dead, far from it...in fact, it is still a pretty good growth vehicle.........and I think the market has kindof forgotten that...
Not that Dell should fall asleep here...Dell needs to continue to execute in their core businesses...and ,by all means, Dell needs to prepare for the day in which PC growth will become even slower, and slower....and the PC gets replaced entirely....but such transitions take a while...(I think this is now the 3rd year that I am reading articles about the death of the PC....let's just rename it "Fidel Castro" since it never seems to want to die).....and meanwhile, I don't think you would argue (against the direction of this prediction) that we are going from 25 to 100 million PCs in the next 8-9 years......that is pretty good growth, Rude.......and someone has to make them (PCs)...and Dell can do it profitably.....much more than others.........and if they are smart...they will continue to save most of that cash....to buy or launch new businesses in newer, higher growth industries.....a la Microsoft...to prepare for that inevitable day....(Don McLean sings "The Day the PC Died")
5 yr. growth rate of 33% p.a. (revenue/earnings) still looks possible to me...Not to you? I expect EPS will grow a bit faster (35% p.a.)...I would like to see Dell move on the acquistion front.....Let's suppose Ted W. and MD did get along (fat chance)...waddya think about that merger?? |
