InvestorsHub Logo
Followers 2
Posts 639
Boards Moderated 0
Alias Born 03/31/2001

Re: chwdrhed post# 47042

Thursday, 09/25/2003 3:35:02 PM

Thursday, September 25, 2003 3:35:02 PM

Post# of 93821
So you are suggesting that since EDIG would not meet the minimum requirements to be a supplier to Dell, they would need to leverage the "middleman" to meet capital, ISO, and other Dell requirements?

That isn't really what is known as a "middleman", that is someone else having the relationship with Dell. That means even if EDIG were involved, the payoff would be very little for them. They need the "middleman" more than the "middleman" needs them in that case.

With Dell bragging about small margins, that "middleman" becomes a full frontal screen and pennies trickle through to EDIG.

EDIG has managed to make exactly NOTHING on deals without "middleman", they have made exactly NOTHING on deals when they were the "middleman", how do you think they are going to make money hiding behind a 3rd party.

Dell coming into this is going to further push these players into the "commodity" realm. As that happens, the margins shrink and fringe players like EDIG will find it almost impossible to grab their pennies.

So will everyone seems happy that Dell is entering this space, I see that move as the beginning of the end for the 3rd tier players (see the PC market).

EDIG was much better off when it was only Apple, at least they held for some type of margin.

Join the InvestorsHub Community

Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.