Value Investing News

Positive

1. How well is Dell selling compared to other brands?

2. What is the top selling Brand right now? 

3. What is the top selling model from the top selling brand?

●         73% of respondents stated that Dell computers were selling better than other brands sold at their store location.

●         60% said that Dell was the top brand right now, 27% said that HP was the top brand and 13% said that Sony was the top selling brand.

●         The Dell Inspiron was the top model according to 40% of respondents the HP Pavillion was tops according to 20%, while the Dell XPS and Sony VAIO were tops according to 10% each.

Conclusion of Channel Check:  The survey shows that Dell computers remain well thought of at least in the consumer electronics retail space. Our survey does not capture corporate or on-line sales but gives some indication to preferences among brands.  We did not see notebooks mentioned in this survey, but the incidence of those models might be indicative of the strength (or lack of strength) of the notebook trend. Overall the survey reflects positively on Dell's sales via the consumer retail channel.

Catalyst for stock movement:

DELL Reports Earnings on 5/28/09

1. Can I come down and get a Palm Pre today (or Pre-order one)?

2. Are you sold out of the Pre? 

3. What is the best selling phone model at Sprint now?

4. What is the best e-mail device at Sprint to get? 

5. What is the best device to get at Sprint for music?

6. Has there been increase in people upgrading their phones or opening new accounts in the past month?

●         60% of respondents at Sprint stores said that it was possible to come down and place a pre-order for the Palm Pre.  40% said you could not.

●         100% of respondents said they were not “sold out” of the Palm Pre.  We asked this question to get an early lead on sell-outs, delays or difficulty in getting units based on demand.

●         27% of respondents stated that the Samsung Instinct was the top selling device.

●         23% said it was the Blackberry Curve. 10% said the LG Rumour was the top seller and 75 said the LG Lotus.

●         60% of respondents cited some Blackberry model as the best device for e-mail. The Samsung Instinct was identified as the top e-mail device by 10%.

●         28% cited the Samsung Instinct at the top device to get for music as the primary application. The Samsung Highnote was seen as the top device for music by 20% of respondents.

●         73% of respondents said they are seeing increases in upgraded phones or new account openings in the past month compared to the previous month.

Conclusion of Channel Check:  It looks to us like the Palm Pre's will be available despite expectations for sell outs by Sprint management. The lack of aggressive recommendation of the coming Pre by Sprint reps also suggests they are happy to sell existing devices and do not see the “Pre” as a category dominating device.  Palm's existing phones are nowhere to be found on the Sprint stores reps recommendation list which seems problematic.

Catalyst for stock movement:

Palm Pre is launched at Sprint on 6/6/09.

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