RE: I thought that DELL was in the 20-25% margin rate already, except for the server area.
No,
Ken,
DELL just like every other Box maker out there subsidises lower margins Boxes with higher margin Servers and Note-books.
DELL despite what is believed here does not make 20% on a $1,800 PC
And DELL does make greater than 20% margin on a $5,000 server, and even more on a $100,000 server configuration.
The problem is that DELL's sweet spot in PC's in $2,200-2,600, I think they get a good number there, in the 17-19% range maybe(just a guess)
But I don't think they can keep adding GB of HD and MB of RAM every month to keep prices at that level.
Sooner or later, (maybe later) buyers will start turning down those options to more reasonable levels. 3-5GB on the HD, 64 on the RAM, 4 on the Video ect...
This is IMO a potential powder keg for DELL just waiting to blow.
Jim |
