Originally Posted by DuckieTigger
So you are saying that Dell's problem is that their computers are too reliable and don't need replacing? Or that even the low-end range of their computers was reliable enough to not need to upgrade to more expensive? I really doubt that the profit margin is any different on their low end and high end models.
I don't think reliability hurt them; I was just pointing out that lack of reliability was not their problem.
And, yeah, I think that there is much less profit at the low end. Even if the margin is the same (and I'm not sure that it is), you will make more *profit* on an expensive machine as opposed to a low end machine. This would be similar to the problem that netbook makers had - they sold a lot of machines but made very little profit in doing so because there's just not much left when you're selling a product so cheaply.