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Technology Stocks : Hewlett-Packard (HPQ) -- Ignore unavailable to you. Want to Upgrade?


To: Dave B who wrote (1790)9/25/2002 2:41:35 PM
From: Oeconomicus  Respond to of 4345
 
But of the various manufacturers, Dell is generally considered the lowest cost producer, so they can cut the prices even lower before they cut the margin to zero.

But they are not the producer, which was my point.

As for the value of the Dell brand in "attaching" sales of printers to PCs (or selling printers by themselves), it matters not - at least to me. Even though I bought an HP printer to go with my then-new Dell PC 20 months ago, I didn't buy it from Dell because I could get a much better deal elsewhere (Office Depot, I think). And even though I wanted a 19" monitor to go with my then-new PC, I went to Buy.com and got a NEC for way less than the Dell. I suspect that many consumers shop the same way. And if not buying these things along with a PC, I doubt many will pay a premium to buy a Lexmark from Dell.

JMO,
Bob

PS: Millions of people already pay a premium to buy HP printers and supplies. At most price/feature levels, if any, they are not the low-price option. Yet they dominate the market.