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Technology Stocks : Dell Technologies Inc.
DELL 126.59+0.1%3:59 PM EST

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To: Lizzie Tudor who wrote (175346)11/11/2005 11:30:29 AM
From: TigerPaw  Read Replies (4) of 176387
 
a consumer electronics tivo-like OS emerges

If Dell becomes mostly a reseller of electronics equipment it will be competing not only against the Best Buy's of the country, but every person who can get a bulk deal and build a website or place items on E-Bay.

Manufactures don't always get the large part of the profit. Take for example, disk drive makers. They make an incredible and precise product but they get doodly-squat return on their money. This is because almost nobody wants to buy a disk drive unless it is part of a bigger product. It's the final assembly or manufacture that can choose from suppliers and squeeze their own operations. If you resell another manufacturer's retail-ready product you can only squeeze so far or they sell it to someone else.

IMHO the winner of a tivo-like OS will be the one who can tie up exclusive content, because the barrier to making the device is too low.

TP
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