Dell is the only likely buyer(box maker anyway). Again, GTW is a poor fit, it has a different store model and of course are already in the market anyway. Dell is the only box maker that has no retail market presence. CPQ wouldn't be interested because it would upset their other retailers (Radio Shack, Best Buy, etc). Same with IBM and HP. Dell has the most to gain by a CPU acquisition...while CPQ and others attack its direct market, it could attack the retail level and still maintain the BTO strategy. Over runs or canceled orders could be sold through the stores or be offered as demonstration computers. Think about it...you enter a DellCompUSA store...try out a computer and then order it there or at home -via- Dell's site. Defective boxes could be returned to a DellCompUSA store...these items could piggyback ride back to Dells manufacturing center since trucks returning from stocking the stores are returning there anyway. What a great internet marketing tool eh? Buy it here...if something is wrong drop it off at one of our local stores (within reach of 2/3's of the US population, I think anyway)
Dell needs to have representation in the retail side...they just prefer to not use the distributors (MICA,IM,TECD,MSEL,ETC). The market cannot be ignored though, especially with all the corporate accounts that CPU has...also, Dell wishes to sell computer components as evidenced by gigabuy.com...so absorbing and selling CPU's inventory as a business fits in also. Gateway has expressed no desire to sell retail items.
Now the only problem is Halpin may not want to sell...and that we know is a real possibility. On the other hand if Halpin is considering any offers from a Staples (or others), odds are once it went public Dell would enter a bidding war. I feel real condident that DELL wouldn't let it go. Also, there is no way Dell could launch a retail segment and penetrate the market effectively...it would take too long. The best thing that could happen at this point is Gateway goes public with some press that it's stores are all performing real well...it would bolster more interest from the Dell Brass to get in there quicker.
Just some thoughts and of course very subjective...I really only see Dell as a candidate to bail out CPU. Halpin train wrecked it good...I'm not sure if he could plot a course out of a paper bag much less a course to return CPU to profitability<g>.
Hey RD..nice to see you around again. How have you been?
Rich |
