Word: pcs
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...PCs are unusual in the technology world in that they are basically commodity products—with Intel and Microsoft controlling the technological innovation, the “box makers” like Compaq and Dell have little basis on which to differentiate their products. In a sagging economy, conditions are ripe for a devastating price war and a consolidation of the industry, which we have in fact seen in the last year. Two of the major players—Hewlett Packard and Compaq—are doing everything wrong in response to this situation, while two of the others?...
Michael Dell, CEO of the eponymous PC maker, has prospered by being the cause of HP and Compaq’s woes. Dell builds and ships its PCs directly to customers, taking most orders through its web site and avoiding sales channels, large parts inventories (which decline in value by the hour) and anything that might drag it down. Dell’s “direct” approach enables it to make money virtually no matter what a PC costs; thus, Dell launched a major price war last year to gain market share and force its competitors into...
...software strategy, built around the Macintosh as a “digital hub,” has produced a string of successful, free multimedia applications like iTunes and iPhoto. The result: despite a meager market share of 4.5 percent, Apple, like Dell, actually made a profit selling PCs last year, something none of the other, more conventionally led companies can claim...
FAST PHONES Last week Verizon became the first U.S. company to deploy the fancy, fast new form of wireless Internet access known to techies as "3G," for "third generation." The $30-a-month service (Verizon calls it the Express Network) will send data to PCs with special wireless cards, and even to some cell phones, more than twice as fast as an ordinary 56K modem...
...Sales of PCs in China are expected to grow 20% this year, with most bought from the Legend Group, a homegrown computer company based in Beijing. Legend has benefited from distribution deals with many of China's state-owned companies and from its exclusive right to distribute popular Toshiba notebooks in China. But these two privileges will increasingly be in jeopardy as more companies gain entrance to the market...