Wednesday, February 22, 2006

DELL plays hide-and-seek

In the earnings conference call, DELL CEO Kevin Rollins dodged some questions and offered to provide more details in its April analyst meeting. Now DELL has postponed the meeting to September 2006, saying there will be no news until then.

My take is this: DELL is in a very tough situation:

0) Outdated INTEL FSB based technology is a tough sell.

1) INTEL will have to cut co-advertising funds and reduce special kickbacks to DELL, as INTEL itself is in deep inventoy build-up and has been downgraded to a target price of $16.

2) But AMD capacity is all booked by HP, SUN, Lenovo, Acer, DELL won't get allocation even if it wants to pay higher prices.

Lenovo is going to launch PCes in US soon, targeting small and medium businesses.


Anonymous Anonymous said...

Ugh. You do realise Dell just had a very profitable quater?

Desktop computer sales may have been flat, but this is an industry wide trend, not just at Dell. (more and more people want laptops now)

In terms of grwoth year over year, Dell is well above the industry average. Indeed no one is growing faster than Dell, with the exception of Apple Computer - who also uses Intel processors now!

9:48 PM, February 22, 2006  
Blogger Sharikou, Ph. D said...

Did it occur to you that DELL dropped a lot after the so called "striong growth" quarter?
Wall Street is not so stupid to believe in DELL dudes' hype.
Read this, DELL revenue dropped Q/Q, and Y/Y.

10:08 PM, February 22, 2006  
Anonymous Anonymous said...

AMD has enough capacity for DELL. Fab36 is just going online and it could deliver 1,5 times the capacity of Fab30 with 90nm.

2:26 PM, February 23, 2006  

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