Mon, Aug 13th 2007 4:19pm
Commoditization is always a threat to PC manufacturers like HP and Dell, although by most accounts HP has done a better job of differentiating its products than the competition. But there's also an upside to commodization for these companies: cheaper components. A new research note from a Wall Street analyst argues that both HP and Dell will realize meaningful benefits from cheaper components when they report their coming quarterly earnings. In addition to lower DRAM and LCD prices, the ongoing price war between Intel and AMD will prove particularly beneficial. Whether these companies are actually taking advantage of these savings or whether they've been forced to completely pass them on to consumers depends on the market dynamics. Between Dell and HP, they may have enough of a grip on the market to avoid an all-out price war themselves, but such a situation can only be temporary as they'll be forced to cut their own prices eventually.
If you liked this post, you may also be interested in...
- EFF Asks Court To Reconsider Ruling That Would Make Violating Work Computer Policies A Criminal Act
- Court To Homeland Security: Wait, No, You Can't Just Take Anyone's Laptop At The Border To Bring Somewhere To Search
- Presidential Hopeful Carly Fiorina Displays Astounding Ignorance In Slamming Net Neutrality
- Teen Changes Wallpaper On Teacher's Computer; Gets Charged With A Felony By Sheriff's Office
- Intel Turns Off Russian Forums, Blogs & Comments In Response To Russian Blogging Law