Mohan,
Your post incorrectly attributed to M. Dell the statement that Dell has 20% pc market share. I believe their market share is around 6%. Dell's statement pertained to incremental growth:
DELL: Well, build to order is really not the same as direct and to replicate Dell's cost structure, of course, they would need to not only build up the same capabilities that we have, but they'd have to eliminate their dealers and resellers. So they've got a long way to go before they're in a position to duplicate our cost structure. I think more importantly, your likely to see the leading companies, with Dell really, the fastest growing of them, gaining share against the smaller players.
GURVEY: So, that, so there will be a thinning out in other words. Not as many companies in the field.
DELL: Correct. In fact, in the first half of this year, the overall market, you know, growth-Dell represented about 20 percent of the incremental growth, Compaq about 18 percent, IBM (NYSE:IBM) about 5 percent, so you see 3 companies gaining about 53 percent of the overall market share growth that occurred in the first half. So that speaks to an industry consolidation which is underway, with Dell leading the pack.
Respectfully,
Jack |
