rudedog, I am not sure where you are getting your server growth numbers from? For the last year the growth was +200% Where do you get 75% from?
As far as your statement about other players standing still. As you have said previously most of the growth goes to the big four and shifts from the others. During the past 3-4 years Dell has grown at 3-4 times the industry average, which means some have stood still and others have lost market share.
I am not sure what you mean by entry into the high margin business is expensive if Dell is already in this business and these businesses are , in large part, direct business which favor the Dell direct business model.
As far as your comparison to HP, I cannot understand why you would suggest Dell cannot compete with HP. I would say the reverse is true. HP has an inventory of 81 days as of the end of last quarter plus approximately 40 days in the channel. Since Dell only has 8 days of inventory and component prices are dropping at the rate of 1% per week, this gives Dell a 16% price advantage before we talk about dealers' mark-up. Not only does Dell have a significant price advantage, but I would suggest to you that with 121 days of inventory HP has a obsolescence problem that Dell doesn't have.
Lastly, if you think Dell's outlook is not that bright, why are you holding 48,000 shares??????????????????????
:o)
Drew |
