Nov 12, 2004

Distribution Innovator DELL Posts 25% Profit Increase

PC juggernaut Dell continues to reap enormous benefits from its early moves to create the computer hardware industry’s most effective and efficient distribution system. While the company’s 18% marketplace gains in the most recent quarter benefited heavily from passing along reduced component prices to end-users, its well-honed distribution muscle provides the value-added front end that makes such moves simply icing on the cake for devoted customers.

The earnings performance at Dell is an embarrassment of riches, coming in the face of continued Wall Street analyst pessimism towards the PC industry and big incumbent players such as Cisco Systems. The way to win in PCs? Distribution, distribution, distribution!

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