Dell Technologies Inc. Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Dell Technologies Inc.

DELL 133.78

-0.1%

3:59 PM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Jackie Ng who wrote (105672)	2/28/1999 12:27:00 PM
From: Mehitabel	Read Replies (1) of 176387

What you and some analysts describe as "PC Price Wars" are not a threat to Dell. Dell doesn't lose these "price wars", Dell starts them, for deliberate strategic reasons. It has been a strategy of Dell's for quite some time to take advantage of product transitions to "hit the competition while they are down". Competitors have a good deal of the old product on which they will have to take losses. Dell is able to "kick 'em while they're down" by cutting prices on older models at that very time. This ensures that competitors will have to take even bigger losses on the old product and/or lose market share, most likely both. Dell cut prices on older models consistently each time a new INTC product came out all thru 1998. Read MD's book, pp 201-205 for his discussion of what he elegantly calls "playing judo with the competition". What you think of as "industry analysis" is really a very superficial if not cliched repeat of uninformed commentary.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next