Dell blames cheap notebook sales on paltry 2Q earnings

[ctv1116]

http://biz.yahoo.com/ap/050811/earns_dell.html?.v=7

"Increased shipments boosted Dell Inc.'s second-quarter by 28 percent but revenue fell below Wall Street expectations as the company blamed overly aggressive pricing of its low-end desktop and notebook computers."

Perhaps if they didn't have $750 coupons on every laptop they sold this wouldn't be a problem...

[slavic]

They fall in line with other suppliers, Dell's main market share leverage is that they run at a higher profit margin so if someone trys to competitivly squeeze profit margins they squeeze right back. Of course this is quite good for the customer, but it leeds to interesting earnings reports.

So how cost advantaged does Dell run? Well they could actually sell their computers at a small loss and still make money. Wrap your mind around that one.

[smartalecc5]

what does cost advantaged mean?

[ctv1116]

Accessories, service, brand loyalty.