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I understand the business side completely
Dell because of it's size and scale has a cost advantage over their competitors. They elect to sell PCs at a loss for a period of time hoping to gain market share. They make money at it through upsells and because of their strong presence in business and servers. Their margins erode however as the article says. So to increase their margins they attempt gain margin by selling high end computers.

What I have stated about the PC price wars and Dells attempts to crush their computers are historical fact. Michael Dell has on numerous occasions stated his goal was to eliminate competitors.
Posted by: ShadeTree   Posted on: 09/30/05 You are currently: a Guest | Members login | Terms of Use
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DELL = cheap! Nothing changes it!  sharikou | 09/28/05
Um...  A_Pickle | 09/28/05
You, buy a clue  ITGuy04 | 09/29/05
Almost had a point...  Asesino | 09/29/05
Dell Rules............Yeah, Dell rules JUNK  Xsive1 | 10/03/05
I'm In Their Target Audience . . .  markdoiron | 09/29/05
I have to give mass props to Dell  Real World | 09/29/05
Several inaccuracies  ITGuy04 | 09/29/05
Several inaccuracies Part 2  Asesino | 09/29/05
Part Tres  ITGuy04 | 09/29/05
Part Quattro happy  Asesino | 09/29/05
Better than Compaq ever was  CobraA1 | 09/29/05
Hardly.  ITGuy04 | 09/29/05
Dell smokes Compaq on PC side...anyday!  Asesino | 09/29/05
Open up a Dell of the same vintage  ITGuy04 | 09/29/05
I'm done with this thread  Asesino | 09/29/05
They raised the prices and didn't change a thing  kenhi@... | 09/28/05
Actually...  A_Pickle | 09/28/05
Tell 'EM...  Asesino | 09/29/05
Look at the cost of a configured system  kenhi@... | 09/29/05
Look at the cost of a configured system  kenhi@... | 09/29/05
You can polish a Turd and it's still a Turd  ITGuy04 | 09/29/05
Wow, the ego...  gdening | 09/29/05
Amen to that!  Asesino | 09/29/05
It's all about perceived value, folks...  corton | 09/29/05
and these forums need a spell checker  corton | 09/29/05
Not to mention an "edit" button  CobraA1 | 09/29/05
Spell checking  jimsum | 09/29/05
Great Idea!  Asesino | 09/29/05
Me too  Asesino | 09/29/05
Prius != Corolla  jimsum | 09/29/05
Well said...good job!  Asesino | 09/29/05
Best thing 'bout DELL was the DELL-DUDE...  Feldwebel Wolfenstool | 09/29/05
Dell is that bad of a company  RIAAsucks | 09/29/05
No kidding  ITGuy04 | 09/29/05
Your bad experience doesn't speak for everyone  Asesino | 09/29/05
Their declining satisfacton scores do...  ITGuy04 | 09/29/05
Check PC World Mag's May 2005  Asesino | 09/29/05
"declining satisfaction..."  MacCanuck | 09/29/05
Stop posting here you MAC lover  Xsive1 | 10/03/05
Try reading comprehension...  MacCanuck | 10/05/05
Whats a Labtop?????  Xsive1 | 10/03/05
Vily, are you there?..... Vily? Vily?  mlindl | 09/29/05
What are they saving the Opterons for, then???  ejhonda | 09/29/05
Dull Don't Do AMD...  Wolfie2K3 | 09/29/05
Does anyone else find it ironic that, ...  ShadeTree | 09/29/05
That's a sign of maturity of the industry  Real World | 09/29/05
Rarely does an industry drive all of the profit ...  ShadeTree | 09/29/05
Stick to tech because  Real World | 09/30/05
I understand the business side completely  ShadeTree | 09/30/05
But the playing field was level  Real World | 09/30/05
I didn't say they were evil.  ShadeTree | 09/30/05
And I'm still contending that you're wrong  Real World | 09/30/05
Timing is everything and this wouldn't ...  ShadeTree | 09/30/05
Also ironic that Dell goes this route...  MacCanuck | 09/29/05
There has always been high end ...  ShadeTree | 09/29/05
Sorry, but I disagree...  MacCanuck | 09/29/05
We will have to agree to disagree.  ShadeTree | 09/29/05
Crome Wallpaper...  degger007 | 09/29/05
There is a sucker born every minute!  johnsmith222 | 09/29/05
Amen, I agree  Xsive1 | 10/03/05
Dell=Garbage  Xsive1 | 10/03/05
Dell ia a Major Ad buyer from Ziff-Davis  Xsive1 | 10/03/05

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