Overall, it seems unlikely that Dell's share gains would be enough to offset the potential loss of Intel marketing monies.
More Quotes from Toni Sacconaghi:
Dell was able to gain PC share while sustaining moderate ASP (average selling prices) declines and benefiting from component cost declines. The PC market unit growth was 15 during calendar Q4 and Dell gained share.Toni Sacconaghi
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.
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 consistent with our February 2002 worldwide IT spending survey results, which indicated that IT budgets remain highly uncertain and that IT capital spending growth in 2002 is likely to be modest.
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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