Dude You're Getting a Dud

I recently read an article with this same title on MSN: http://blogs.moneycentral.msn.com/topstocks/archive/2007/12/18/dude-you-re-getting-a-dud.aspx.

In the article the author notes Dell's poor performance in the consumer market due to horrible customer service, blah technology, and prices that are not as competitive as they appear. All true points. But the real business of computers isn't made in the consumer space, it's made in commercial sales of servers and hardware for the office.

In this market Dell is still doing quite well. There are really only a handful of top players in the commercial market: IBM, Compaq/HP, Sun, and Dell. Everyone else is pretty much an "also ran". Unless Alienware decides to enter the server market (which would kick arse, by the way), we're pretty much stuck with these 4 manufacturers to choose from.

The author also alludes to Gateway as an example of where he believes Dell is headed, but Gateway was never a major player in the server market. So whille Dell's lack-luster sales in the consumer market may indicate that the company needs to rethink this particular channel, I wouldn't quite count them out just yet. They're still VERY solid with their servers and commercial lines and that's where a big chunk of their cash comes from anyway. Ultimately all of these companies are just putting together other people's innovations (i.e. AMD and Intel), so I think, for now, I'm gonna stick to the whore I've already paid for.

Just my 2¢.