<as far as second time computer buyers, did you see Dell's growth in that market (i.e. $2000+ ASP to consumers in Q4) it something like 90%% YOY. From what I understand, dell has recently added some focus and attention to that market>
You've just confirmed what I've had in the back of my mind for a long time. It looks like CPQ could easily fall into a trap of being the "low cost provider" with Dell being the natural upgrade. The 90% Dell growth YOY quote tends to confirm that. Instead of flying back and forth from Mass, CPQ needs to concentrate on reputation enhancement for the upgrades. If not, <1k yields less, tends to cause line problems in production due to savings on parts/labor, which causes quality gap, with end result of lower margins, reduced research, and EPS. Thanks for your input.
Mike Gordon |
