Dell and the Aftermath of September 11th.

Paper Summary:

This paper provides an overall look at the success of Dell computers in the aftermath of the September 11th crisis.

From the Paper:

"By the end of the quarter, Windows XP was shipping in 46 percent of consumer PC's. Sixty-two percent of desktop computers were sold with Pentium 4 chips. Mr. Dell estimated that 164 million PC's worldwide were more than three years old, and 450 million PC's contain chips running at less than 700 megahertz, about a third the speed of the fastest processors on the market today [2].
"We would expect that in the spring and in the summer, there is going to be a lot of upgrade activity going on among corporations," he said. "Certainly factors like the economic stimulus being debated right now would have some impact on that." James D. Ragan, a senior equity analyst with Crowell, Weedon & Company, a Los Angeles brokerage firm, said Dell's aggressive price cuts, which drove average system prices last quarter down $50, to $1,800, were inflicting pain upon its competitors. He said Dell should reap the benefits in the future."If you believe we're going to get a meaningful recovery, that's certainly good news for Dell shareholders," Mr. Ragan said."

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