Dell was able to gain PC share while sustaining moderate ASP (average selling prices) declines and benefiting from component cost declines. The PC market unit growth was 15% during calendar Q4 and Dell gained share.

While Sun has held its own in Unix servers in our recent surveys, we believe that Unix market revenues are unlikely to grow materially going forward, and accordingly, that Sun will need to improve its (x86)-based share in order to generate meaningful revenue growth.

But if Dell exploits the cost reduction,

It's going to cost the average household $600 more a year just to put gas in their car. Ticket prices for things at Wal-Mart and Target. Ticket prices for airplanes. Ticket prices for just about everything are going to go up.

Dell has done so well that it's become an 800-pound gorilla. But it's hard to grow an 800-pound gorilla.

Profitability for the quarter was affected by the lower revenue and a reduction in average selling prices for the company's board products.