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Monday, 03 September 2007 10:29

Dell pockets component savings

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Pass them onto customers no way

 

Dell's recent improvements in its profits show that rather than making money from its restructuring it is making cash back thanks to falling component costs.

According to ZDNet, Apple got a huge bump on cheap component prices. It pocketed most of the gain as well and got away with it.

Dell, is being looked at a little more closely because component prices are expected to rise again and cause the PC maker a few headaches.

It seems that the outfit knows this is happening and is saving all its cash for a rainy day. It could however be reducing the price of its products to stimulate demand. Many analysts said the saving for problems later is not really that sensible for Dell.

More here.

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