This is quite significant because what we saw during the back-to-school season was that Dell was really willing to take on the retailers like Best Buy and CompUSA by offering free shipping with a PC bundle for as low as $299.
This unforeseen resurgence of a category pronounced dead back in 2004 is attributable to several factors, but value and digital media attributes lead the pack.
It doesn't make the technology obsolete. The G5s are absolutely beautiful in terms of performance and design. They're still very viable and fully functional machines.
In the long term, Dell is going to protect Dell. If they see that's affecting sales, they're going to drop that shipping charge. I have the feeling you'll see that happening sometime during the holiday season.
AMD is in a stronger position to compete with Intel than it has been in past holiday seasons.
This certainly isn't challenging Intel's retail dominance. What's most significant is that in a market where AMD is able to compete with Intel, it is doing well, extremely well.
The fact that a growing number of digital media PC user require better performance and bigger storage repositories also bodes well for a sustained resurgence for the desktop space.
The vast majority of Apple buyers are still Mac loyalists, and I don't think you're going to find too many people who are going to take Apple to the mat. They may be angry for a little while, but it won't last long.
Dell has done so well that it's become an 800-pound gorilla. But it's hard to grow an 800-pound gorilla.
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