Dell, Yahoo, Microsoft, others, lose value

Something is happening in the USA, and in the IT-world.

The New York Times reported that Dell’s shares fall nearly 10 %. Yahoo lost about 20 % last week, too.

The New York Times write, “In the past, Dell could cut prices and gain market share without hurting profit. That was because its model of selling directly over the Internet and toll-free phone numbers and its highly efficient management of supplies and production gave Dell a sizable profit margin advantage over competitors.”NYT continues, that “Hewlett-Packard, Lenovo and others have closed the efficiency gap, and reduced Dell’s profit-margin advantage”.

It seems the big US companies are facing a changing world, and they need to change their business model soon, if they want to continue to lead the IT-revolution. I already wrote about this earlier in June this year. It’s a pity to see so quickly that I was right.

Same thoughts about Yahoo – and again, the NYT reports on their problem competing with Google.

Among other, the newspapers noted, “Shares of Yahoo fell to their lowest level in nearly two years in after-hours trading yesterday as it reported weak revenue from Internet search advertising in the second quarter and a delay in a critical project that is meant to increase search revenue.”Earlier last week, Microsoft also lost 2 % of its value, after the announcement that the European Commission has punished the software giant with Eur 280 million fine (and yes, i wrote about it, too).

The main conclusion is that today only the companies that are innovative, that can think, create, experiment, will succeed. Ideas are more valuable than programmers.

May be I should reconsider and go back to private business, and help those companies. The solution is right there, but it seems there’s no one that can find and implement it.

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