scott146

Dell Laptop Explodes at Yahoo Office; ThinkEquity Says Dell May Pre-Announce

The key item in this report is the the expectation that Intel is likely to cut off its "marketing budget" that it has been providing to Dell. This price subsidy in my view has been a key component of Dell's competitive advantage, along with its inventory management skills and direct marketing model. Dell has been able to win market share in the past with the lowest prices in large part due to the price discounts Intel has been giving them on its chips.

It is logical that Intel would cut this off now that Dell has broken down and started to offer AMD-based machines.