<<<DELL never buys CPU>>>
Well...whatever, not trying to be argumentative here...it is possible though. You have to realize that it doesn't matter what Michael Dell said back then...what matters is today. Things like manufacturing capacity at Dell matter. If it was set up to grow at a rate when there was little, if any, internet competition then perhaps it is under utilized now. If true, then filling that manufacturing void will need to be addressed. With the internet market under attack Dell would be foolish to not attack other markets. By the way...the manufacturing capacity is just an example of things we don't know, I am simply saying that it is things like that which will determine what Dell does...not a vison years ago, but a vision now and in the future for what the landscape will be. Clearly Dell cannot sit back and watch. CPQ took out DEC for a reason, enter new markets (especially corporate). Gateway is going brick & mortar for a similiar reason. Dell went internet for a reason but now the turf is open game for many and very competitive.
May not happen...but Dell is a near perfect fit (Apple store within a store is an obstacle, but could be dealt with and would probably help margins). Big question is knowing that Dell has to grow sales (to please the street) and the internet field being entered by other box makers...WHAT WILL DELL DO? Hope that they can remain #1 in internet sales? Close their eyes and pray? Nope, they need to get retail exposure and quick. Hopefully in all the different US markets. How do they do it? I don't know, but CPU is one way. I admit it is low odds though, any buyer of this dog is. Strip the brass and it has a chance...keep the brass and it will be a lonnnnnnnnng time for a turn around. Unfortunately I'm long and will stay long and was caught off guard this last time it fell off the cliff. I've played it for years wisely...didn't see this one coming when I loaded up at 11-13 and nibbled on the May calls. Oh well, live & learn:(
Good luck to all the longs,
Rich |
