Victor -
Interesting...
"I think you are going to see machines in the $599 price range from most manufacturers," said Mike Winkler, senior vice president at Compaq Computer Corp. (NYSE:CPQ).
He should have said 'Winkler said, with a suppressed smirk'. Then we see MSD with his head in the sand as he has been for the last 6 months on this issue -
"Retailers can sell all the low-cost PCs they want," said Michael Dell, chairman and CEO of Dell Computer Corp. (Nasdaq:DELL). "But they aren't making any money off them."
...
No surprise, then, that the direct PC maker's lowest priced PC costs $1,199.
So we have CPQ, which has been planning to make profitable, highly integrated $599 and $499 machines for some time, and Dell, which thinks people will pay twice as much for the Dell name.
I'm sure die-hard believers in MSD's pronouncements will claim that CPQ is not making money, can't keep the price up, Dell is right about this and everyone else is wrong. Time will tell, I guess.
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