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Politics : Ask Michael Burke
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To: Knighty Tin who wrote (55354)4/9/1999 10:32:00 AM
From: RealMuLan  Read Replies (1) of 132070
 
I have some problems with this potential IBM-Dell co-op.

1) At the moment, they are still head-on competitors. In most cases, one party's gain is another party's loss. Today's news is that IBM goes on-line direct too.

2) Say if Dell takes over IBM pc business, what is the gain for Dell? There is a big difference bet. IBM and Dell pc price. So how can Dell keeps the high margin on its own original brand. And who will buy higher-priced Dell computer instead of lower-price IBM pc if they know the components come from the same manufacture or made on the same Dell assembly line?

Mike, maybe you can give it a better explanation?

Thanks a lot.

Best.
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