I made a number of posts re e-machines, from when it first surfaced. I clearly pointed out that there were companies selling pcs very cheaply, that eventually ASPs would come way down for pcs,that cheap pcs would grab lots of the market, that the cheap pcs were not the latest, greatest, best pcs, but that they had better specifications than the best pcs had just a couple of years ago. The cheap pc manufactures have quickly captured a substantial market share. I never recommended e-machines as a stock. Indeed, I repeatedly stated I was not discussing e-machines as a stock
or a company. Nevertheless, the board consistently ignored my points and repeatedly posted that a company can't survive selling computers at a loss or giving them away. I just was saying these companies would have an impact on dell, while any of them or their successors were around. e-machines has survived awhile. It has completed an ipo-granted it wasn't a hot one. the company has obtained funds.Its use of those funds may hurt dell a little. indeed, many, including many on this board seem to think that dell cannot make much on consumer pcs, sub-$1,000 pcs, pcs, but will make money on workstations, servers, the web, investments, etc. |
