Dell Hits a Speed Bump
Because Techtel measures demand in its early formation and throughout the buying process, Techtel research often uncovers trends and shifts in market demand before other sources.
The fourth quarter of 1998 was a noteworthy example. Techtel's quarterly tracking studies, using the Techtel General Business Panel, revealed a slowdown in purchases of Dell PCs. When Dell released its fourth-quarter results in February 1999, it confirmed that revenues had indeed fallen short of Wall Street consensus estimates. Revenue actually grew nicely during the period, but there was a noticeable slowdown in the rate of growth.
The chart compares Techtel's purchase data, based on reported U.S. purchases of Dell PCs, to Dell's adjusted share price. The fourth-quarter downturn in reported purchases foreshadowed the slowdown in the growth of Dell's share price.
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