Oh sure say what you will, but how do you explain DELL growing 3-4 times the market. Dell is not interested in the sub-1000 market and they are increasing their prices relative to others. In the 80s they used to sell their products at 40% discount relative to others now it is less than 10% while all the others are giving away the store. Haven't you heard of CPQ giving away free monitors,oh sure there is lot of money in that exercise.
Source: Dallas Morning News (excerpts)
_ Dell Computer Corp. is developing a strategy to promote its brand image as more upscale while effectively raising some prices at a time when most in the personal computer business are focused on selling cheaper machines.
The marketing plans were unveiled Thursday at a meeting of financial analysts in New York, where Dell's forecast was far rosier than Wall Street has been hearing from others in the PC industry.
Round Rock, Texas-based Dell has steadily been reducing the discounts it offers during the past decade, gaining business along the way. ''We are a counter-intuitive company,'' explained Thomas J. Meredith, senior vice president and chief financial officer.
In 1988, Dell PCs were about 40 percent less expensive than competitors' machines, and the company's market share was less than 2 percent. Today, the discount is less than 10 percent, and Dell's market share is more than 6 percent, the company said in its presentation. |
