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Strategies & Market Trends : Range Bound & Undervalued Quality Stocks -- Ignore unavailable to you. Want to Upgrade?

To: BWAC who wrote (4732)	8/29/2001 3:49:06 PM
From: Dave	Read Replies (1) \| Respond to of 5499

BWAC. Yes, I can understand your comments. I definitely agree that in general, right now, Dell computers are superior to Gateway computers. I own a Dell. It's perfectly adequate, for a PC. But I think you are wrong when you imply that Dell is able to produce bundles that other PC assemblers cannot. Software publishers, including Microsoft, are in the business of selling their software, and they LIKE to bundle their products with computers. I'm not talking about "the kid down the street," but other box makers like Gateway and Compaq and whatever PC companies might spring into being. All it takes is volume. If you've got the volume, you can get the bundles. The only computer makers that are really differentiated from the pack are Sun and Apple, because their products are not commodities. I do own some AAPL because I think Apple is uniquely positioned to gain market share in both the consumer and server space. They have somewhere around 5% market share in the consumer space and a little over 0% in the server space now, so there is plenty of room for spectacular growth. Plus, Apple has shown a propensity, if not any particular knack, for pioneering new markets, which I have not seen from Dell. I believe that Apple has become more focused on this divergence from the PC space now, and has developed a nascent architecture for building a network of connected devices in the home and office. We'll have to wait and see if they are able to market this successfully, but I believe they have a chance this time. By comparison, Dell just assembles Windows PC boxes. They may well make the very best boxes, and may use the finest components, and may command a healthy market share. But that's precisely why this is a good time to sell DELL. There's nowhere for them to go but down. They are insanely overpriced considering both the barrier to entry and the risks to their market power. Just my opinion. Dave