Is Dell Overly Optimistic or Just Peddling Accessories?

Mar.20.07 | About: Dell Inc. (DELL)

Take a look at this MarketWatch article:

TAIPEI (MarketWatch) -- Dell Inc. (NASDAQ:DELL):

Sponsored by: DELL

Dell will buy US$2.3 billion worth of computer liquid-crystal-display panels from its Taiwan suppliers in 2007, the Commercial Times reported Tuesday, citing unnamed industry people.

The value will translate into shipments of 23 million units, according to the paper.

Last year, Dell - the largest foreign buyer of Taiwan goods - bought 20 million LCD panels from suppliers on the island, the paper added, without disclosing the dollar value.

Now either Dell expects to ship 15% more complete computer systems in 2007 verses 2006 or Dell expects to sell a heck of a lot display panels on their own. Either way, Dell wants us to know that it is business as usual. We question why this information was 'leaked' to the press at this time.

Notice how though the information originated from the Taipei office, there is no mention of Taiwanese companies by name. Only Dell has the Dollar value information so we can guess who the 'unnamed industry people' are - or should we say is. (The equivalent to the U.S. Chamber of Commerce information is confidential in Taiwan.) Also, for some strange reason, this year we also get the Dollar value. Are we supposed to calculate Dell's profit from this tidbit?

O.K. Dell, you have the CrossProfit certificate of health; you're not going into bankruptcy (at least not in 2007 or 2008) and you have our best wishes. If this is what you wanted, next time just ask for it.