PC chief Dell scoffs at rival NC concept
infoworld.com
Dell chairman and CEO Michael Dell here Friday panned the network computer concept as unworkable in an age when users want more power from their desktop and mobile computers.
Couldn't you feel the panic of Michael Dell towards the coming sub-$1,000 PC/NC/NetPC? These sub-$1,000 PCs are killing the market of $2,000+ that Dell has been prospered from. Why? The reason is simple that Compaq Presario 2200 $999 with a Cyrix MediaGX 180Mhz provides the same speed sense of Dell $2,999 Dimension XPS M233s towards home/office users to cruise the internet, word processing, checkbook registering and play games. Why should people want to pay twice price for the Dell PC?
The impacts towards Dell are the reducing ASP and reducing margin (as Dell buy from the most inefficient vendor: Intel).
Need a proof of the impact from sub-$1,000 PC? techweb.cmp.com
"We were getting conflicting messages," he said. "Retailers were telling us we didn't have to be at $999, but industry sales figures were saying over half the market was under $1,500, most of that in the sub-$1,000 category. We had to grapple with that."
Without competitively priced affordable PC while being attached by the technology rich competitors, IBM, Compaq and HP, Dell is going to fall like a rock from this quarter. The best time for Dell is over! |
