The Smartest Price War Ever

from the follow-the-logic dept

IBM’s Lou Gerstner has apparently said that Dell’s attempt at starting a price war was very stupid. However, Bill Gurley explains why Dell’s price war is a really smart move for Dell. Basically, the idea is that Dell’s business is much more efficient, so it can afford to depress prices the longest – forcing everyone else out of business. Of course, I’m still not even convinced that the PC business really is a commodity business – since it is possible to differentiate yourself through quality and customer service. For example, despite being a loyal Dell customer for nearly 10 years, I would certainly pay extra to avoid ever doing business with the company again after the way they treated me when the last laptop I bought from them broke.

Rate this comment as insightful
Rate this comment as funny
You have rated this comment as insightful
You have rated this comment as funny
Flag this comment as abusive/trolling/spam
You have flagged this comment
The first word has already been claimed
The last word has already been claimed
Insightful Lightbulb icon Funny Laughing icon Abusive/trolling/spam Flag icon Insightful badge Lightbulb icon Funny badge Laughing icon Comments icon

Comments on “The Smartest Price War Ever”

Subscribe: RSS Leave a comment
mhh5 says:

um, yeah, and Apple is still alive...

While I know people will disagree, I’ll say it anyway… Apple has consistently higher prices for their laptops, and they still sell well. I’m not sure what share of the laptop market Powerbooks are, but I don’t think Dell is going to run that many major players out of the laptop/desktop business. Micron, yes. Gateway, maybe. Apple, no. IBM, no. Sony, no.

But in any case, this is all good news for PC consumers.

Add Your Comment

Your email address will not be published. Required fields are marked *

Have a Techdirt Account? Sign in now. Want one? Register here

Comment Options:

Make this the or (get credits or sign in to see balance) what's this?

What's this?

Techdirt community members with Techdirt Credits can spotlight a comment as either the "First Word" or "Last Word" on a particular comment thread. Credits can be purchased at the Techdirt Insider Shop »

Follow Techdirt

Techdirt Daily Newsletter

Techdirt Deals
Techdirt Insider Discord
The latest chatter on the Techdirt Insider Discord channel...