The growing strength of AMD puts Dell in a favorable bargaining position with Intel, in our view. Even if Dell does not move to adopt AMD, it is likely to continue to use them as a leverage point to gain further concessions from Intel. Intel seems likely to lose revenue andor margin, either because Dell defects or because it is forced to offer incremental concessions to Dell to maintain their loyalty.
More Quotes from Toni Sacconaghi:
Beneath the headline numbers, Dell's FY Q4 06 was not confidence inspiring. Dell didn't gain PC share in the quarter, despite the fact that its gross margins declined meaningfully and the company had an extra week in the quarter.Toni Sacconaghi
The fourth quarter is likely to be filled with anxiety-provoking rumor and speculation - not fun for investors. Moreover, we do think that many investors may feel that they have heard too many excuses about execution to buy into the stock now, even at levels around 100.
Toni Sacconaghi
This is the fourth straight year where your priority is to make money. It's the third where your priority is to grow . You haven't fulfilled those priorities.
Toni Sacconaghi
Their failure to reiterate the timeframe for that guidance today clearly suggests a notably lower growth rate than they had anticipated seven months ago.
Toni Sacconaghi
As much as we had hoped that our reseller checks would have been more encouraging, the fact is simply that demand continues to remain weak, with no imminent rebound,
Toni Sacconaghi
The really big overhead issue is the merger. There's just a tremendous amount of uncertainty around that. It's hard to get people excited about, or confident about, the stock given the uncertainty around the merger. If it goes through, there's uncertainty around pulling off integration. If it doesn't go through, the leadership of HP is in question.
Toni Sacconaghi
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Based on Topics: Loyalty QuotesBased on Keywords: amd, andor, concessions, dell, incremental, intel
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