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That's a 2.7% margin – vulnerable to rises in component pricing as volumes fall.
The company also said it benefited in the quarter from favorable component pricing and that it expected those trends to continue in the next quarter.
"We had some better-than-expected component pricing, and a better-than-expected product mix," Kevin Rollins, Dell's vice chairman, said in a telephone interview.
Comparison of TELRIC with alternatives proposed by the incumbents as more reasonableembedded-cost methodologies, an efficient component pricing rule, and Ramsey pricing, the most commonly proposed variant of fixed-cost recovery ratesettingare plausibly answered by the FCCs stated reasons to reject the alternatives, §51.505(d); First Report and Order 655, 696, 705, 709.
Q: Component pricing?
Adtran says the revenue decline and component pricing issue clamped gross margins.
Similar(46)
But increasingly, manufacturers are taking advantage of falling component prices to pack even low-priced phones with fun features.
Cisco also gained from lower component prices.
§ 1005.50 Class prices, component prices, and advanced pricing factors.
§ 1005.53 Announcement of class prices, component prices, and advanced pricing factors.
On one hand, component prices drop, because you can negotiate better terms.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com