Originally Posted by afobisme
dell is smart, even though their revenues and profits per customer is probably lower than your standard, they sell to the MASS at these prices.
I wouldn't necessarily call Dell "Smart"...they're just not as dumb as the Biz School prof. from Columbia, and the BB exec that actually bought into the idea. Their plan COULD work out short term (2-4 years), but eventually...they'll realize that making $12 billion from 10 million customers was better than making $10 billion from 5 million.
I'm sure that Dell, along with every other business out there, would LOVE to have nothing but "Angels" as their customers...but when it comes down to it, being a market share leader (even at smaller profit margins) is usually much better than making a larger profit on a significan smaller percentage of sales.