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Technology Stocks : Dell Technologies Inc. -- Ignore unavailable to you. Want to Upgrade?


To: jim kelley who wrote (22775)11/24/1997 3:19:00 PM
From: Meathead  Respond to of 176387
 
The strategic positioning for first time buyers may backfire
on a number of fronts. 2nd and 3d time buyers moving up will likely
make educated choices about their next PC based on price and
performance and not on brand loyalty. Some folks may even become
frustrated with the "cheapness" of their first PC and wrongly
vow not to buy from that company again. Many things are possible
but I have to admit, trying to attract 1st time buyers and create
brand loyalty is a sound strategy. Time will tell.

I myself can think of only 2 items I buy based on brand loyalty...
Sony TV's and Honda automobiles but only because they are superior
in performance and quality for the price. If Dell manufacturers
shoddy overpriced goods with lousy hit-or-miss feature sets,
they'll get whupped.

With today's announcement, Dell will state only that they are keeping an eye on the sub $1000 PC segment but have no immediate plans to enter. That's about all we'll get on this go round regarding that.
I bet they do talk about plans to agressively persue the
power user and become the vendor of choice in this segment however.

Best of luck..

MEATHEAD