Dell announced a couple of price cuts: enterprise server prices drop 28%, single-core severs 13%, Latitude notebooks up to 17% and workstations up to 20%.
The changes appear to follow along the lines of Dell’s occasional restacking of tariffs that put a stop on the progress of small clone makers. The latest cuts will be bad news for business IT rivals and white-box makers that rely on price for differentiation. Indeed, it’s getting harder to make a case for staying sloshing around in this blood bath of a market.
The old Compaq would get blue in the face when hacks would suggest Dell could go lower on pricing than its Texan neighbour. The build-to-order promise was so much hogwash, it would insist -- Dell has the same cost model as the rest of us. But who is left standing now when it comes to beige boxes housing Intel chips and running Windows?