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Dell Computer Corporation (DELL) Message Board

  • bethsdaddy bethsdaddy Apr 9, 1998 10:50 AM Flag

    So Mikey wants to stay where he is....

    Because there is 17% profit on high end consumer PC's vs 1% market on sumb $1000 PC's.

    Sorry, Mikey doesn't get to make that choice. The market dictates what Mikey will have to sell, and the market is migrating to the 1% profit PC's

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    • Did this man finally get a clue? You bet he did! It's also what compaq didn't realize until last quarter. But dell has known this forever. You see, you gotta listen to your customers and ask them what they want, how much they want, what they want next year, and all that good stuff.

    • and apparently it hasn't dawned on you that people will buy the computers they want, no matter what you would like them to buy and how much margin you would like to make

    • People who prefer BMWs are still driving BMWs despite the fact that a Honda Civic costs a fraction of the price and accomplishes the same basic task.

      Get it through your thick head. High-end PCs are still selling very well.

    • I spent $3000 on my PC, I got it when it when the PII's were fairly new.

      It's a 266PII, 64Mb, 6 gig HD, with 17 Inch Monitor, and 3D accelerated video card.

      I have friends that have bought similar PCs for at least $2000.

      My girlfriend is buying a similar one.

      Your $1000 market is limited to Wal Mart customers, who are first timer buyers, and not regular PC users.
      Most of those bought PC's when the 'hip' internet exploded last year.

      Not much of a market there.

    • The_Market_is_a_Scary_Place The_Market_is_a_Scary_Place Apr 9, 1998 11:26 AM Flag

      What the hell does your company make? Go and ask your boss if he'd readily take a cut to the bottom line. Your ass would
      dissappear before margins. The sub 1K boxes are a misguided attempt to eliminate the competition. It's called dumping if the Jap's do
      it. Once the players are trimed, you can kiss cheap computers goodbye. In the mean time, Dell & Gateway are still, and will
      continue to get, the highest ASP's because, that's what the sophisicated consumer, and quailty oriented companies want. TCO fool. The
      sub k boxes are starter systems bought by the masses who want to "own" a computer, because it's neat. The Dell and Gateway
      customers know that a computer is a tool for effectively managing their data and performing work.
      Don't forget, people buy KIA's, but they still buy alot more Hondas.