RE: Now do you understand why Dell does'nt target the individual consumer as heavily as corporations?
Meathead,
Did you happen to notice that the north American Corporate desktop segment of dell's business, that I think you are referencing here, was the weakest area of growth in the Americas ?
Yes that is correct, The biggest chunk of DELL's business, the North American Corporate Desktop grew at a paltry 40%, well below the company's 55% average.
Looks to me like some of us might just have the makings of an argument on this one after all.
RE: <<<Right this moment, companies are purchasing 400Mhz systems. Dell will sell more today than they did just yesterday. The ASP's and margins are extremely healthy on these systems and that goes directly to the bottom line>>>>
I would like to add to this, the cost of a 400 chip is going to start to come down from an already low introductory price faster than any new processor ever. That means that DELL, despite the speed with wich they can transistion to these, will have a shorter period in which they will achieve peak margins ect. from the machine.
For your cost analysis model,
Why not wait another 6 months and get the 400 machine for $1,899 and expect it to last for 4 1/2 years, heck, on a 100 million upgrade, I am sure management won't mind streaching that to an even 5 years.
There I just saved you company half a million dollars.
Also in your model, on the second upgrade you spread cost and instalation over 2 years. This is inflating your numbers a little. And the next upgrade may have a lifespan of greater than 5 years. We won't know until then.
Jim |
