Thursday, June 07, 2007

As Dell Stop Selling HDTVs Is the Market Undervalued?

Dell Computers has decided to stop selling LCD HDTVs to return its focus back to selling computers. Although Dell were branding other people's screens their leaving of a supposedly 'profit heavy' market may start revealing how increasingly undervalued it is.

At the start of the HDTV land grab Dell and many other traditionally non-TV brands, like Motorola and Kodak, saw an opportunity to quickly make vast profits on the news that hundreds of millions of household were swapping out their main television.

Most of the newcomers bought their TVs from third-party original equipment manufacturers, who then put on the specific company brand names. But the huge investment made in flat screens has flooded the market and prices have tumbled accordingly putting customers off buying and instead waiting for the inevitable price drop.


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