Thing is, Dell has by far the strongest financial position and largest cash hoard, so it would seem to me that they are in the best position to win a price based war. Dell is still making money on boxes, and if they choose to continue the fight in theory the competition might have to use debt financing if they continue to bleed, that introduces more cost, etc. etc. Of course Dell appears to have it's own internal battles at the moment, witness the key Meredith resignation. It should be interesting... It doesn't mean the competition goes away, but for long term holders of stock, it probably would mean more pain. If AMD could hang around and duke it out with Intel this long, I doubt CPQ/HWP will fold...
Regards,
John |
