Consumer Market (Business To Consumer)

[tut]

Because of the airlines price competition, seats are really cheap (particularly compared to years ago) and the airline industry seems to teter on the brink of bankruptcies. I don't know what going to happen there.

Computers seem healthy amid price competition?

What do you think?

Wall Street Jounral

http://online.wsj.com/article/SB10001424052748703315004575073770137219054.html?mod=djemTECH_h

BY JUSTIN SCHECK
When Michael Dell returned as chief executive of his company three years ago, a key part of his turnaround strategy was that Dell Inc. would stop heavily discounting its computers to win business. The focus was on profit, not market share.

But Dell's latest results show that it is falling into its old habits. On Thursday Dell said profit dropped 4.8% in its fiscal fourth quarter even as a surge in holiday computer demand lifted revenue 11% from a year earlier.

The profit decline was partly due to the acquisition of computer-services firm Perot Systems, which closed during the quarter. ...

[serycurtis10]

I think it's not solely because of product discounting that their profit dropped. Several factors can be attributed to this like not-so effective advertisements, economic status, product presentation.. And there's a lot of competition, which if they can't keep up, they will surely lose profit.