[quote]Originally posted by Nonsuch:
<strong>Steve Jobs ought to point out that Dell can't keep slashing their margins without eventually putting themselves
out of business, to say nothing of quite a few of their rivals. Sheesh, at least when Apple sells a desktop, they make a profit on it.</strong><hr></blockquote>
Personally, I think Dell is an idiot. However, business-wise, he's an evil genius, much like that Bill guy in Redmond.
Remember their previous strategy? They were reducing their prices to force Compaq, HP, et.al. to follow suit. Dell increased their market share, made money, and hurt the competition all at once (we'll ignore the future ramifications of this practice for another time).
It's not always about who has the best computers. It's who can sell the most. And right now, Dell is <a href="http://apnews.excite.com/article/20020118/D7H4AF6O1.html
" target="_blank">winning.</a> They're making money, and increasing market share. That's business.
Dell doesn't have to be the best. Is Microsoft the best? Exactly. Dell just has maintain their business model, and in the end, they'll win. Does anyone see Walmart folding up anytime soon?
Apple's biggest advantage is keeping their R&D cost high, so they can keep innovating. That gives them a market advantage. However, they still have to manage their business accordingly.
In any case, ignore Dell, or next year he's going to proclaim how he invented a computer with a screen on a stick.