Greg, Re: WebPads, UltraThins etc.
Dell will continue to be a fast follower in my opinion.
Been there done that will be done again. This philosophy
has kept Dell from entering markets prematurely and
absorbing huge losses when either the idea fizzled or
the technology wasn't ready (e.g. pen computing).
To be sure, many of these new devices will catch on and
become huge growth drivers... some won't. Dell continually
evaluates new technologies, solicits customer feedback
as to how useful it might be, and carefully watches for
signs of marketplace acceptance in segments they may or
may not currently serve.
These new technologies can take many, many quarters to
become a viable product category so Dell has plenty of
time. There is little long term advantage to being
first to market with a new technology. Fast followers like
Dell recognize the optimum entry point and figure out
how to do it faster, better, cheaper.
Let someone else invest the R&D dollars and assume the
financial risk of creating a new product category for
Dell to enter. As a shareholder, I don't want to see
Dell gamble on unproven concepts.
However, the WebPad concept, if done right, looks like a
product that will be a raging success. As well, China and Japan
constitute a huge market with early signs of demand for
UltraThin and small desktops.
But, if they become arrogant and ignore a viable segment, or,
something about their business model prevents them from
effectively competing for share.... well, that would be
cause for alarm.
MEATHEAD
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