Scott- It is very simple, based on the 1st quarter alone...
It is virtually impossible to make a logical argument that PC's can be considered commodities. (Just because a market is price competitive, that does not make it a commodity; Nowadays, almost company/market operates with pricing-pressure) . If indeed PC were commodities, Dell could not have been as successful as they were, in a market environment in which no one (CPQ, HP, IBM) else made money....If PC's were commodities, you would not see the (numerous) third-party surveys which show that Dell retains many more customers (2x, 3x) than other PC vendors....If PC's were commodities, All companies would have similiar customer satisfaction levels (after all, when is the last time you only bought gas at Gulf because they were "Gulf"......indeed, you buy at the closest gas station, and when you run out- gas is a commodity). Having said this, if PC's were commodities, the companies who have the most distribution outlets (CPQ, HP, IBM) should sell the most/make the most money, since all PC's are commodities (pricing the same, features the same)......
We could continue looking at other elements of the PC space, but it is clear it does not fit the term "commoditization".
The fallacy that you (and other bears) are "smarter" than the general marketplace (consumers that buy computers) is laughable....The market would indicate this before you guys would realize it.....Your "commodity" argument has been made for years....just as long as shorts have gotten killed on Dell's stock.... |
