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What Dell Should Do (Gloomy Assessment of Dell Computer)
BusinessWeek ^ | July 21, 2006 | Arik Hesseldahl and Catherine Holahan

Posted on 07/22/2006 11:12:56 PM PDT by Zakeet

The growth engine that Dell once was is sputtering. The degree of its troubles was made plain—yet again—on July 21, when the company said this quarter's earnings would fall far short of analysts' forecasts. Sales won't meet expectations either.

It was the fourth time Dell (DELL) said it wouldn't meet quarterly earnings or sales forecasts since the beginning of last year, and investors were incensed. Some registered dismay at the company's annual shareholder meeting in Austin the same day (see BusinessWeek.com, 7/21/06, "Dell's Dull Meeting"). Dell shares dropped nearly 10% to $19.91, the lowest level in almost five years, and dragged shares of other computer makers, including Hewlett-Packard. The rout left the Nasdaq at a 14-month low.

(Excerpt) Read more at businessweek.com ...


TOPICS: Business/Economy; Miscellaneous; News/Current Events
KEYWORDS: 1dudeyouregetting; 2abankruptcy; dell; dellcomputer; dellhell; marketsaturation; salesstagnation
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Interesting read about Dell stumbling due to a rapidly maturing, saturated market. The authors argue that Dell needs to reinvent themselves post haste -- but offer few tangible suggestions other than "bring back Mike," open Gateway type retail outlets, and the always popular platitude "innovate".

I am interested if any of my fellow geek colleagues have any more or better suggestions

1 posted on 07/22/2006 11:12:57 PM PDT by Zakeet
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To: Zakeet

The only thing Dell has going for them to compete against their clone competitors is their brand name. Their strategy of selling low-cost computers as a loss cannot be sustained.


2 posted on 07/22/2006 11:17:02 PM PDT by HAL9000 (Get a Mac - The Ultimate FReeping Machine)
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To: Zakeet
Chinese Lenovo to buy IBM computer business

02:28 2004-12-09
IBM's deal to sell its personal computer business to China's Lenovo, a move likely to reshape the industry, signals the PC has evolved into a mass consumer item with little profit, analysts say.

http://newsfromrussia.com/world/2004/12/09/57406.html

its all good chicoms will provide us with all we need
3 posted on 07/22/2006 11:24:26 PM PDT by Flavius (Qui desiderat pacem, praeparet bellum)
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To: Zakeet

When is the last time Dell got a patent?
Has to be one of the least innovative large tech companies around. They are a commodity box pusher with a brand name.


4 posted on 07/22/2006 11:30:42 PM PDT by Mount Athos
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To: Zakeet
Yeah I had speced out a 3000 dollar Dell last year but canceled due to their refusal to transfer funds from my checking account. They became obsessed with using their 90 day same as cash credit card and I refuse to be forced into paying cash via credit cards. I actually found an HP Media Center computer at Best Buy that was almost exactlly what I built online with Dell and for $500 less
5 posted on 07/22/2006 11:31:23 PM PDT by Texasforever (I have neither been there nor done that.)
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To: Zakeet
Dell pulled an HP, trying to enter another market (LCD & flat-panel televisions) instead of focusing on its strengths (PCs).

The best computer you can buy is from Systemax from Tigerdirect.com.

6 posted on 07/22/2006 11:35:04 PM PDT by Extremely Extreme Extremist (404 Page Error Found)
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To: Zakeet

I never purchased a Dell because I didn't want to buy something like a PC online and there were no Dell stores where I lived.


7 posted on 07/22/2006 11:35:44 PM PDT by peggybac (Tolerance is the virtue of believing in nothing)
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To: Zakeet

People are going laptop, and Apple seems to have a better product.
Dell needs to focus on laptop - - QUALITY, higher-end laptop.


8 posted on 07/22/2006 11:38:43 PM PDT by Lancey Howard
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To: Extremely Extreme Extremist
I have a year old HP Media Center PC and it rocks. I was a regular Compaq user for yeas, I had the first Compaq "portable/luggable". I then had 2 Dells, liked them both but they became very arrogant in their pricing and billing structures.
9 posted on 07/22/2006 11:39:08 PM PDT by Texasforever (I have neither been there nor done that.)
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To: Zakeet

I like their work stations. It's a lot of work to keep up with what hardware is hot this week. I'd much rather let them figure out what components work well together and which don't rather than build my own system.


10 posted on 07/22/2006 11:39:44 PM PDT by Paleo Conservative
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To: Zakeet

""What would I do? I'd shut it down and give the money back to the shareholders."
-- Michael Dell discussing Apple Computer, October 1997

My, how the worm turns. If I were Steve Jobs, I think I'd have to send him a card and a fruit basket of some kind. I'm petty like that.


11 posted on 07/22/2006 11:45:13 PM PDT by ReignOfError
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To: Lancey Howard
People are going laptop, and Apple seems to have a better product.

And now it can run Windows. Not that I want to if I have the option, but Mac on Intel has eliminated the little inclination I had to keep a Windows box around.

12 posted on 07/22/2006 11:47:48 PM PDT by ReignOfError
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To: Zakeet

Opening stores is probably a waste of money - but they could put out a series of models available at retailers.


13 posted on 07/22/2006 11:48:05 PM PDT by monkeyshine
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To: Texasforever; Lancey Howard

I have to agree. HP has some good machines out right now and over the last 2 years. Apple has done well understanding niche marketing - the graphics/video/music niche, and the email/internet/entertainment user. They do well focussing on these niches - they make it appear easy for those who don't want complexity.

Windows doesn't help the PC market, IMHO. They make it more difficult by jamming too much stuff on one piece of software.

Dell is just an assembler of other people's parts - I can, and have done, and will continue to build my own machines to my specs without paying their assembly fees. And my Ipod works just fine with my Logitech THX surround sound stereo system.


14 posted on 07/22/2006 11:53:28 PM PDT by monkeyshine
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To: Texasforever

I have an HP too! HP Pavilion. I recently overhauled it, added more harddrive space, memory, and an LCD monitor with new speakers. Pimp my PC!


15 posted on 07/22/2006 11:54:19 PM PDT by Extremely Extreme Extremist (404 Page Error Found)
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To: ReignOfError

We've always had Gateway and Dell computers, and they have been very good, worked well for us. But recently my daughter decided to get her own computer for college and settled on an Apple laptop because she could record her original songs on it, among other features. I mean, she just opens the thing up and plays guitar and sings and voila! there's her song on the computer.


16 posted on 07/22/2006 11:55:04 PM PDT by Lancey Howard
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To: Extremely Extreme Extremist

Yeah but I am kicking myself for not keeping up with the times and waiting for the Dual Processors to come on line. I do a LOT of 3d graphics work and video editing and I should have been more aware of what was in the works. Oh Well.


17 posted on 07/22/2006 11:57:25 PM PDT by Texasforever (I have neither been there nor done that.)
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To: peggybac; Zakeet; Texasforever
I never purchased a Dell because I didn't want to buy something like a PC online and there were no Dell stores where I lived.

I usually buy high end computers, and the ones in the stores never have all the options I need especially the Professional version of Windows instead of the Home (amateur) version. I once made the mistake of recomending buying an HP desktop. It had no driver disk so when I had to reinstall an upgrade to Windows Professional using the option to delete the boot partition and completely reformat it, I lost all the drivers that came with the computer on the utility partion. Every Dell computer I've ever ordered had CD's with all the drivers needed for the equipment installed at the factory so that if I needed to reinstall anything I could. I really hate the computers sold in stores that have no Windows installation disk. They only have a system image that completely destroys everything on your system hard disk including all the non system partitions if you run the image restore. I much prefer getting the real Windows installation disks shipped with my Dells.

18 posted on 07/23/2006 12:00:18 AM PDT by Paleo Conservative
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To: Paleo Conservative
I agree, and had a client in that very boat a week ago.

For fear of losing un-archived data, they bought another license of Windows XP to do a partial reinstall of Windows on their HP.

Those factory image CDs really screw people over. Everyone needs a real Windows CD once there's a problem.

Dell's portables, w/onsite & ins. make the best non-Mac purchase.
19 posted on 07/23/2006 12:06:17 AM PDT by ConservativeMind
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To: ConservativeMind

And I really hate it that hardly any computers available in stores have Windows XP Professional installed. Just because you may be using a computer at home doesn't mean you don't need the features of Professional. It has much better security and encryption,provision for VPN tunneling, multiple processors, hyperthreading, and multimonitor support. I'd much rather order a Dell online with all the features I want rather than some half-assed generic model in a local computer store.


20 posted on 07/23/2006 12:15:49 AM PDT by Paleo Conservative
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