Dell's black friday

[rleo25]

Today at Wall Street's closing, NASDAQ composite dropped almost 1% due to a Technology business slowdown. Dell's shares price felt about 12%, the worst perfomance in 5 years.

What it means plainly is that people is spending less in buying computers. The important thing here is to ask why? Well there is some delayed product introduction into the market that has us buyers waiting: Vista, Merom, LCD backlight thechnology, NAND technology, form factor size reduction...

Amidst such expectancies the products launched this year seem obsolete even before arriving the stores. The gap between technological advance and hardware production is so enormous that it has stalled the market...

So if computer producers want to revive buyers enthusiasm they should make a significant qualitative shift in their product design policies and offerings... see what's going on in the Nr.1 computer seller, beware and open your eyes all you product managers at HP, Lenovo, Toshiba, Acer, Apple, Sony, Panasonic, Fujitsu, Asus, Gateway and the rest...

The problem is not only of price reduction, if this strategy keeps trendy all of you're going to a crackdown, you can't sell underpriced goods to survive...

[jdhurst]

Perhaps vendors are building things we don't need. My machines are certainly fast enough (I can run at least two machines simutaneously on one physical box with no problems). My hard drives (desktop and laptop) are at 7200 rpm. 10,000 rpm would be nice, but what I have is satisfactory. In terms of Windows, if Windows 2000 had clear type it would be good enough. XP Pro certainly is good enough, and I don't really need Vista.
... JD Hurst

[bigtiger]

I agree. Hardware Technology today is more than enough for ordinary people. Unless some marketing experts come up some even fancier usage for ordinary people, I will forsee a further slowdown of demand.

I think that is why IBM sold its PC to Lenovo. That is a trend that everybody has to follow.

However, there is one exception. I think the demaind for smaller, reliable, battery-optimized and quieter pcs will increase overtime.

[lucas]

so stock prices change in one day and everyone makes sweeping longterm conclusions of what was behind it.

silly

[dsvochak]

rleo25 wrote:

What it means plainly is that people is spending less in buying computers. The important thing here is to ask why?

"Delayed technology", etc. may have nothing to do with any tech business slowdown. Not every computer equipment purchaser upgrades when new tech hits the market. Also, as computers reach the saturation point in the percentage of households with computers, the number of "new buyers" will decline.

Perhaps this is an indication that we've reached that stage.

[rleo25]

Not so silly buddy! ... According to annalists the next upgrade cycle is expected by 2008 until WinVista and a lot of incoming hardware novelties be tested.

Dell's performance is a proof of the market slowdown and serves as a forecast of trends, that's not an isolated issue... don't be simplistic, it indicates that consumers feel they don't need to upgrade for the time being, because the hardware they got is doing well, that means on the other side, that if manufacturers don't add a significative change into their products and the sofware industry don't make an important shift as to force the need for more powerfull equipment the selling curve is going down...

As to innovation Regis McKenna an oustanding Silicon Valley consultant referring to the Dell's lack of R&D said early this morning: "When you rely on others for component and system design, it's really hard to innovate, Microsoft ans Intel have done Dell's R&D for them, and makes them a distributor... Somewhere along the line you lose the quality. Dell needs to do something that shocks people out of their day-to-day world".

Did you get the idea my clever buddys?