I don't see Dell ignoring the low-end PC market segment forever. Intel has made plans to defend it, and the celeron chip is only the first step. I think its only a matter of time before Intel improves its offerings in this segment, and when they do, I figure Dell will get on board. At least I hope they do, because I think its going to be an increasingly important market that Dell won't be able to ignore. What's more, Dell is in the best position to exploit it, given their model and management efficiencies. Like many on this thread, I have tremendous respect for Dell's management, Dell's model, and its ratios which are nothing short of astonishing. I'm sure they've studied the sub $1,000 market until they are blue in the face, but no one is infallible and I hope they are not making a strategic error here. The low end market would complicate their branding/imaging issue, but that's a solvable problem I would think
Low-end PC's or not, I don't see any immediate threats to Dell's continuing to increase its market share, earnings, and stock price.
Cheers. |
