stock bull,
Hi!!!
RE: Kemble & ALL, Dells cuts prices and sells pc below $1000, without monitor. Is this good or bad news? Reason given for price cuts is lower component prices and improved operating efficiencies...so, what's new? What happens when prices start to rise? Also, didn't Michael Dell say that Dell would not enter the sub $1000 market?>>
You know this may sound like someone avoiding the question....but, don't misconstrue the knowledge or the words of Dell...If my small brain recall can be somewhat accurate...... I believe he said there was "no need to at this point"....in addition I can assure you that he isn't selling anything he couldn't make a great profit at..Michael has told us that "MANY AREAS COULD BE PURSUED"......AND, afterall; that statement about the $1000 market was made well over a year ago....so, let's take another quote...this one from Tom Meredith : "COMPONENT PRICES ARE FALLING AS MUCH AS 1% EACH WEEK...." Now, I could ask Chuzz to do the math...but, even I can see that in twelve months or more Dell has the opportunity to once again provide the consumer with the Rolls Royce quality.....the Mazzerati speed......and the Volkswagen Beetle price ....
Another indication why may be due to the burn time and efficiency of the model.....(The ZDNET article tells us this if you read between the lines....For Example....at the Dell Metric Tour in July we were told....at least our group...that Dell would soon be dropping the burn time on the quality testing segment of the PC production ....(ask LONG ON DELL...I can still see him smiling with $$$ signs in his eyes while doing the math with Patrick ...all the while our guide continued talking ) .....something like 500 more PC's each 30 minutes....now the quick math here...well, you can figure it out if I can... :o) In a side note IMO we don't talk enough on this thread about the Dell Model....I joke about my dreams of Virtual Integration....they aren't a joke....the possibilities are endless....IMO this is why Michael can smile so much when asked about why Direct will succeed ....Just my opinion....but, that smile of confidence doesn't occur in any actor...not even Dustin Hoffman is that good... :o)
Best, Kemble
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