Chuzz-
I agree with you too (on that particular statement)....However, the rest of the article did solidify some of the points made on this thread recently...
I think King's (real) point (if indeed he was quoted correctly) was that regardless if the overall PC market grows at 10% or 13% or 15%, the majority of this growth will be captured by the big 4...
Obviously, if the market were to grow at a much lesser rate than this, it would be difficult for Dell (and the other biggies) to maintain the same rate of (their) high growth....Although I think we all agree that Dell would continue to grow at a rapid (albeit) slower rate...
Fortunately, it appears that the low 1st half '98 (overall PC unit, revenue, and profit growth rates) will be a low point for many quarters...
However, who among us would have thought that if the overall PC market would grow at rates of 11% and 8% (or thereabouts) in the first two quarters of this year, that Dell would grow unit sales at 60, 70%+...
Unbelievable....
One factor that should be kept in mind....if overall PC growth rates remain slow, this puts enormous pressures on the "fringe" players to stay in business/consider alternative options....How much is it worth (to the biggies) if several PC makers go out of business (because they can't make money and/or have to contract operations because of slow business...IMO, such an environment would perhaps affect Dell's bottom line (to some extent) but simultaneouly it would speed up the consolidation in the PC industry and could add additional sales/profits....Net/Net..Who knows?
Thanks for spotting that Chuzz....it skipped by me. |
