Lee,
This is to help clarify my points.
First Thank you.
re:>>> Is the Asian Pacific a developing problem? Growth slowed to 35% from 79% last quarter, and Japan was weaker. >>>- <<What did HWP, CPQ and others report about sales growth from this region? >>>
We are talking about DELL here.
DELL said that the AP was in great shape with great strenth.
This is a slow down in growth rate, and a sign that even the mighty dell can't sustain 50%+ growth in all conditions.
re: ARP/ASP was down from last quarter and year over year
>>>>- Mr. Dell said this was attributed to the lower component costs.
Mr Dell also said that they would see no ASP erosion at the end of the last quarter. That was an incorect statement. Net Net, they made less on each PC this Q than last Q despite higher gross margins.
RE: Resistance from the sub $1,000 market is surely a contributing factor.
>>>>>- Dell doesn't participate in that market for the 100th time.
I know that. My point is that others are selling well there. This trend in and of itself could be a contributing factor to falling prices.
RE: Dell Sense that falling prices from the big 3 are a reflection of inventory liquidation is incorrect, though it is a contributing factor.
>>>>>- Wow, I think if Dell misinterpreted something that important that they would not be executing as they are. You obviously underestimate the company's performance and business plan.
The big three are seeing the same component reduction as DELL. The faster they come down, the harder it is for them to make money and the greater the advantage for DELL.
But the three are cutting prices for that reason, then throw extra cut to move a little inventory.
On a price per box level, DELL is loosing its advantage, and it is not because of inventory liquidation. the Three are introducing new products at lower prices than they want to, and the new prices are much more competitive with DELL.
This is my point.
RE: I am impressed that the company did not hint of anything troubling on the horizon. I guess it is not a tulip bulb yet. >>>>>>>- Perhaps they didn't caution about business going forward because they obviously see opportunities.
I was trying to be nice here. The mighty DELL fears nothing but fear itself.
DELL beat numbers by a mer 5% this quarter, the lowest in 6 quarters. >>>>>- I think someone else already pointed out that the comparison is between yr/yr quarters, not sequential since the business is subject to cyclic buying.
DELL beat "Consensous Earnings Estimates" by 5%, (44 vs 42) the lowest in the last 6 quarters that I have information for.
And so the Battle rages on.... :)
Jim
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