Woe Is H-P as Dell Cuts Prices on PCs
The Round Rock, Texas-based computer hardware maker announced price reductions of as much as 22% across its computer line, beginning today.
The price cuts apply to both enterprise and consumer PCs. For example, prices were reduced 6% on Dell's Dimension brand of desktops, and 3% on Inspiron notebooks.
Dell's move came only a day after H-P admitted it had cut prices too deeply on its own PCs -- below Dell's prices, at times -- in a backfired attempt to compete. The move hurt H-P's revenues and dumped its computer division into the red. To fix matters, H-P implied on an earnings conference call Tuesday night that it would raise prices.That makes Dell's next-day price cuts look all the more like a deliberately timed tactical response. "It's really sort of amusing that it could occur two minutes after H-P admitted they didn't know what they were doing in the consumer channel," says analyst Charlie Wolf of Needham & Co. "H-P adjusted prices, meaning they pushed them up, and now Dell goes down
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV