IBM stated in its annual report the PC is dead.
Microworkz is about to sell PCs for $299.
emachines sells them for $399
Free-pc, NuAction,DirectWeb and Gobi will give them away
Prices of PCs go down 15% a year
Margins are slashed to zero
China will mass produce them
Prices on notebooks, servers are falling precipitously
PC manufacturers can't make money selling PCs.
They have to sell other things by way of their web pages.Dell, IBM, Compaq
They sell services-IBM, Compaq-DEC
they take a % of sales or transaction fees for use of their web servers-HP
they sell non-pcs-cell phones, net pcs-Compaq, Packard Bell
Acer and Hitachi don't sell their named computers in the U.S.
They sell storage-Compaq, IBM, HP, and now Dell
They sell search engines, shopping sites-Compaq-Alta Vista, Shopping.com-Dell-Gigabuys.com; IBM-Odyssey
They get a cut from ISPs-Gateway, Compaq
There are many opportunities for Dell -and many dangers |
