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In Reply to: One way or the other - how do you avoid them? posted by rickmcinnis@dogwoodfabrics.com on August 7, 2014 at 06:58:56:
You wonder how anybody makes anything with so many hands in the pot?
Most of the components and subsystems are made overseas. And for commercially made PCs the manufacturers allow crapware vendors to load a bunch of their crap software onto the PC.... for a price. That's how they help subsidize the low price of PCs to the consumer. And then the consumer spends hours deleting the crap he doesn't want or need.
And after all that, the margins are still so thin that smart companies have gotten out of the business. IBM sold their PC business to a Chinese company called Lenovo many years ago. IBM is now selling it's x86 server business to Lenovo. Dell nearly went belly up before they went private and they still struggle. HP was on the brink but has a more diverse product portfolio and they're still around.
Apple has a different business model. They don't race to the bottom of the barrel cutting costs and price like the PC companies to gain market share. They add significant value and differentiation to their premium products. AAPL is back to nearly it's all time high stock price with a market cap of $568B (10x that of HPQ) and about $160B in cash - for returning dividends to stock holders and for acquisitions.
I wouldn't want to be in the "PC business".
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Follow Ups
- RE: One way or the other - how do you avoid them? - AbeCollins 07:23:57 08/07/14 (5)
- RE: "I wouldn't want to be in the "PC business"." - rick_m 09:32:51 08/07/14 (4)
- RE: "I wouldn't want to be in the "PC business"." - AbeCollins 10:24:18 08/07/14 (3)
- RE: "I wouldn't want to be in the "PC business"." - rick_m 14:53:35 08/07/14 (2)
- RE: "I wouldn't want to be in the "PC business"." - AbeCollins 12:48:16 08/08/14 (0)
- RE: "I wouldn't want to be in the "PC business"." - Old Listener 17:35:03 08/07/14 (0)
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