The profit margins on computers have become paper thin now that PC are no longer an amazing piece of brand-new, whiz-bang technology. That margin collapse happens to every type of technology once they become widely adopted i.e. TVs, calculators, microwave ovens.
Dell is desperate for new markets and has decided to enter the cell phone business….in China.
The problem for Dell is twofold: (1) cell phone profit margins are shrinking just as fast as PC profit margins and (2) China has some of the fiercest competition and lowest profit margins of any cell phone market i the world.
Dell may do ‘okay’ in the cell phone business but it isn’t going to return Dell to its 1990’s haydays.
More on this topic
(What's this?)
Why Mike Dell Hates Me
(Money Morning, 10/28/09)
The Top 10 Reasons Why the China Sell Off Will Continue
(Investment U, 9/1/09)
“How China Cooks Its Books”
(naked capitalism, 9/8/09)
China Dumps US Treasuries!
(Red Hot Energy and Gold - Global..., 8/20/09)
Related posts:
- Cell phone users top 600 million in China According to the Ministry of Information Industry, the number of...
- Mobile phone use reaches The number of cell phone users in China hit 592...
- Dell reports 3% drop in sales. Dell reported a 3% drop in Q3 sales. That’s bad....
- Dell in China This piece of news surprised me: Dell computers are now...
- Acer passes Dell Who are the largest computer companies in the world? According...
{ 0 comments… add one now }