Costs, costs, costs....The PC is somewhere between the telephone and the fiber optic lines in terms of cost. Most people can afford telephones, making them a commodity product without question. Many fewer can afford a (real) PC, and only a very small percentage can afford to build the network infrastructure to allow the telephone to function.
This makes the network highly valuable, and therefore highly profitable. The PC somewhat valuable, and respectably profitable. The telephone not very valuable, and with little profit potential. The PC and the network have value inherent in the fact that their power is not universally available in terms of ownership, use, and control. Whereas the telephone is much more universally available.
Hence, Lucent makes money on the network switches, more than it does on handsets. Likewise, DELL makes money on the box because of the demand for more power, and DELL's ability to deliver that power at a competitive price.
Greater power will always be needed, and since DELL is positioned to deliver the cutting edge power faster than everyone else, it will own a large portion of that ongoing market.
The argument about how much power do we need, is total bunk. There will always be a need for greater and greater power.
LoD |
