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Re: [Sheflug] Re: Dell flooding the market .....



Richard Ibbotson wrote:
http://www1.euro.dell.com/content/products/features.aspx/servers_Q4
_W5_pedge_1600sc_pe1218?c=uk&cs=ukbsdt1&l=en&s=bsd

The delivery charge is a bit steep at £49+VAT with total cost of
single default item at just under £174 incl. VAT. You get (I think) a
dual processor board with one processor on it. If you are rich then for
a further £174 you get another 80G HDD and the second processor.



Hmm.. at last.. someone has been taking notice of the letters that I have written to my own MP about high cost of hardware at places like PC World - for example :)

I think this *might* be the lead in to what comes next. Since IBM have sold on something like $1Bn to $2Bn of hardware business to our Chinese friends then the ultimate in competition and such like is about to begin. Okay, maybe I've got it wrong somewhere but a lot of IBM hardware will now be made in China. The Chinese might not bring down the cost of hardware to ourselves in Europe but the threat of it might be worrying companies like Dell.
Could be that all hardware will be made in China.


I'd agree there seems to be a change afoot in hardware prices

I have noticed a reduction in laptop prices.

Dell also did a £10 printer some months ago (but I think that was a winprinter).

I've checked the prices of making up a second 80GB IDE, 2.4G processor and 256MB memory stick on ebuyer and it's worth getting a second box (if you are brave enough to transfer the processor between boxes).

Nice to see that Dell offer Redhat 7.3 as a software option on this box too.

I only use PCWorld for consumables like CD's CD storage and the occasional floppy purchase. Hardly worth the delivery costs from ebuyer or dabs for these items.

Did anyone watch the Richard Dimbleby lecture last night? Dyson's 'rant against the machine' was pretty good. I can only agree that his sentiments that we are now in no position to compete globally with the manufacturing capability of China or India or other 'third world' countries, that engineering and manufacturing has suffered at the hands of the style gurus and that we the UK represents a high cost environment whereas China and India both represent low cost alternatives.

As for prices being bought down in this country .... the car industry has always charged what the market will stand i.e. what people will pay for something. This is why people found it cheaper to go to Europe and buy a car there and bring it over to UK, after having it done up to UK spec. If one industry can do that to us why not another? It is all about profit motive after all.

It's my view that Parliament is now there to support the corporations and the profit motive in the desperate hope that these units will dish out some crumbs of good fortune to the people of this country. So unfortunately I doubt your MP will find themself motivated to do much with respect to PCWorld's pricing policy.

China might go for aggressive marketing policies with severe price reductions in hardware merely to secure the overseas market. But I suspect it has a large enough market of it's own not to worry too much (but it would be silly not to try and grab as much of the overseas market as it can).

Whether any price reductions are passed on down the chain, or whether, by the time the product gets to your local PCWorld store, the profit motive has re-inflated the price back up to what the consumer will pay is anybody's guess.

Given China dropped an MS deal because it wants to foster it's own software industry and has now bought IBM, I'd say the Chinese are being pretty shrewd and some people there have kept some very important cards very close to their chest. I take a small level of satisfaction from the fact it could be said that MS has now lost the Chinese market.

MS has a new 'campus' in Bangalore so it will be interesting to see how China and India get along in the future.

Anyhow, have a happy christmas

Regards

Lesley


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