I think you are right. The price cuts on the Pentium II should work to DELL's advantage.
Imagine that you are shopping for a new computer, and you see all the advertising and hype about the bargains on CPQ and IBM -- and you do get a lot of computer for a very nice price... (when I think of my Commodore 64...) But you happen to be savvy enough to understand that a) these are no longer cutting edge, but have been left behind in the dust of the technology stampede; b) they possess limited upgrade capability c) they probably won't run many of the neato-keen stuff of tomorrow. So you are torn between the advantages (good, serviceable machine at an economical price) and the disadvantages (virtually obsolete, doubtful service). If all you really need is a word-processor and spreadsheet manager, they are probably more than adequate.
But, if DELL can offer you a machine at a somewhat higher--but reduced--price, and which is cutting edge, fully upgradeable, will probably run nearly all applications for the next couple of years, and comes with a dynamite service guarantee...
And there is the matter of bragging rights ("I got a steal on my '95 Cougar" vice "Hey, let me tell you 'bout my new maseratti!")
DELLish, 3 |