Mike: enjoy your analysis on Dell report. One reason for Dell gouged its customers last quarter, is that M. Dell himself misjudged the pricing trends of computer components. He expected the component price would be stable and recover as early as Oct. last year, and the reality? They kept declining.
About the willingness of Dell to sacrifice its margin for the sake of the growth, I think the CFO himself already publicly admitted this after Q3 earning. I remembered someone on this thread asked me about the source. I tried to find it but couldn't. But I am sure I read it from a major on-line news site.
But I have one question for you, how could Dell had 38% of revenue growth, but 55% up in EPS in Q4? Maybe I am too dumb to figure this out<g>.
And one more thing, I smell that there is something on M. Dell's mind. He perhaps has some idea of setting up a dozen or so, maybe less, one-line retail stores, and then spin them off as independent Internut companies, and by doing this to increase his shareholder's value. Maybe this is what on his mind to decide to split the stock? But who knows, anyone's guess is as good as mine. I am just speculating.
Best. |
