Here you go Jim,
CPQ P II 333, Deskpro Series EP 64MB, 4.3, 4MB Vid, Sound, CDROM 24X, Win NT 4.0, No Monitor or anything else really. $1,575
DELL, Same thing, $1,857
Now, 1857>1575 1857 is 18% greater than 1575.
So from this one simple example, It would appear that every thing I have said is true.
The note says that DELL may scrafice unit growth for the sake of margins. And the guy thinks that DELL may be pricing for margin rather than growth. This may be partly because expences may increase as a percent of sales, Probably due to DELL's agressive expansion efforts.
Jim |