Micheal ... Interesting Articles
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Dell cuts prices on some PC models
By Bloomberg News
August 30, 2000, 11:10 a.m. PT
ROUND ROCK, Texas--Dell Computer, the biggest direct seller of personal computers, said it cut prices for some desktop PCs used by businesses, schools and governments after its parts costs fell.
yahoo.cnet.com
Comment: It appears that DELL is getting hurt at the low end of commercial PC's. The reductions are only at the price range of the iPaq. I'm not buying what they are saying about passing on cheaper parts prices, if this is the case, price reductions would've covered a wider price range of commercial PC's.
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Compaq cutting the PC cord
Desktop leader seeking to diversify through a broad range of wireless, Internet hardware
By Carmen Nobel, eWEEK
August 28, 2000 12:00 AM ET
zdnet.com
From the article:
eWEEK: But the majority of Compaq's sales are still indirect sales.
Winkler: The majority of the market does buy through distributors and will for the foreseeable future. ... People who have painted themselves into a box, like Dell [Computer Corp.], I think, are going to be in trouble. ... Right now at Compaq, it's 30 percent direct to 70 percent indirect; that's going to change, but it won't cross 50 percent for a few years.
Comment: I thought all along that the market will always be a mix of direct and indirect sales, and at the end of the day the winner will be the one who got the right mix. I do believe that CPQ got it right.
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