A declining trend in Dell’s (NASDAQ:DELL) desktop pricing isn’t going to impact its stock significantly, as desktops constitute only around 2% of Dell’s stock. In the past week, Trefis members have created forecast for Dell’s desktop pricing and their forecasts suggest that the driver will trend roughly in-line with the declining estimates of the in-house team of analysts at Trefis.
Dell competes with PC manufacturers HP (NYSE:HPQ) and Apple (NASDAQ:AAPL). We currently have a Trefis price estimate of around $17 for Dell’s stock, about 44% above the current market price of $12. Below is the chart showing recent estimates created by Trefis members for Dell’s desktop pricing in detail.
The average of Trefis member forecasts for Dell Desktops Pricing indicates a decrease from $574 in 2010 to around $213 by 2016, compared to the baseline Trefis estimate of a decrease from around $606 in 2010 to $229 by the end of the Trefis forecast period. The member estimates imply a small downside to the Trefis price estimate for Dell’s stock. In the past, Dell Desktops Pricing has decreased from $989 in 2004 to around $619 in 2009.
Disagree? You can drag the forecast trend-line above to express your own view, and see the sensitivity of Dell’s stock to Dell Desktops Pricing.