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.
But If they can get as much horsepower and as many safey features from Mercedes, why would they continue to buy BMW? If you think IBM CPQ and HWP are Hondas in comparison to Dell's BMW like qualities, you are sadly mistaken...but that IS your M.O. now, isn't it? REmeber Dell is the new kid on the block, the others are the pedigreed thouroughbreds
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.