Using DELL's internet site to calm price war fears ...
For almost a year, I had configured an identical DELL computer on the DELL internet site in advance of a purchase. This helped me see first price increases in disk drives last summer (I bought QNTM and did quite well), and later in the fall I saw prices diving in disk drives (I got out). Relevant to today's worries, a DELL system price can be generated from which a direction on market pricing can be observed.
The Pentium II machines seem to be holding in price. I finally did buy a 233 DELL on 1/23/98 (8.2GB, 64MBSDRAM-1DIMM, USRX modem, Altec 495 speakers, 1000TX Trinitron 17" monitor, 3-yr. on-site warranty, etc.). Purchase price was $2,498. The identical system on 3/5/98 costs $2,538. The price has risen! DELL is holding / raising prices ... hardly a signal of engagement in any price war (unless the shorts apply different laws of supply and demand to DELL). In fact DELL is doing so well it is simultaneously expanding in Ireland, China and Austin. Be patient, the market will figure this out. DELL truly seems to be a special company, and it takes awhile for a "changing of the guard" to be fully recognized. |
