Thursday, March 17, 2005

Dell quits 'white box' PC biz

Dell quits 'white box' PC biz | The Register Looks to me like Dell is eating it's seed corn. The 'white box' market for Dell was a great way to take share in the reseller market away from competition and achieve price discrimination on a commodity product. Why would Dell change strategy?--because they need a new source of profit growth and there's nowhere else to go. Nice for the short term, but bad for the long term prospects of profit growth.

Wait to see if Apple jumps on this opportunity to start supplying 'white box' G5 X-servers.

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