Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Meathead who wrote (130906)	6/4/1999 12:57:00 AM
From: rudedog	Respond to of 176387

meathead - I agree that a price war is a very unlikely scenario - both IBM and HP have decided to allow market share to decrease in an attempt to make the PC business profitable, which IMO signals that the will move to a strategy where the PC business becomes an adjunct to their high end business. I expect DELL to continue to take share from both IBM and HP because of that shift. CPQ will be more aggressive in defending its turf but clearly DELL has a strong hand. CPQ can continue to drive the low end consumer business to keep DELL at bay there, but commercial desktops are a harder game - DELL's excellent extranet work and well-executed sales strategies based around the whole value proposition rather than the HW price will continue to win business. That's why I predict DELL will be #1 in US commercial desktops by year end 99. I was really indulging in a "what-if". I don't think that a price war is very likely, but if one were to occur it would be ugly for DELL. It would be ugly for everyone... I think you are right, DELL would probably defend ASP over unit share. They have consistently done that in the past, it's the main reason they have not gone after the very low end consumer business.