Trouble at Dell

simonthewolf · Jul 21, 2006, 10:06 AM

From today's Times:

http://business.timesonline.co.uk/ar...280068,00.html

Blimey, compare those figures to Apple's Q3. Perhaps it's time the company was broken up and the proceeds handed out to the shareholders?

Shadow · Jul 21, 2006, 10:18 AM

The sooner Dell go down, the better. Long live Apple!

JurgenWigg · Jul 21, 2006, 10:53 AM

Don't count your chickens before they hatch

there's still plenty of time for Dell to turn their stuff around, even before they're in danger of bceoming number 2 of the top 4.

p0intblank · Jul 21, 2006, 11:04 AM

This may sound harsh, but I would love to see Dell fail. They make nice monitors, but their computers are just pure crap.

AlBDamned · Jul 21, 2006, 11:08 AM

That's a huge drop in value and forecasts but I believe they'll pull back if they can get their products and service better. It's still a long way to the bottom.

mkrishnan · Jul 21, 2006, 11:12 AM

Dell's long term answer was supposed to be pushing up margins with the XPS hardware... I think that seems to have fallen by the wayside. Eroding margins due to pricing pressure should hardly be a surprise. They're the ones who engineered that catastrophe for themselves....

supremedesigner · Jul 21, 2006, 11:17 AM

Quote:

Originally Posted by mkrishnan

Dell's long term answer was supposed to be pushing up margins with the XPS hardware... I think that seems to have fallen by the wayside. Eroding margins due to pricing pressure should hardly be a surprise. They're the ones who engineered that catastrophe for themselves....

My opinion: I think most people prefer new intel over AMD b/c of power saving. I may be wrong. What do you think?

benthewraith · Jul 21, 2006, 11:21 AM

Quote:

Originally Posted by mkrishnan

Dell's long term answer was supposed to be pushing up margins with the XPS hardware... I think that seems to have fallen by the wayside. Eroding margins due to pricing pressure should hardly be a surprise. They're the ones who engineered that catastrophe for themselves....

Since Dell now owns Alienware, what exactly is the point of XPS now?

They should stick with building and manufacturing consumer and business computers. There's also the fact that everyone, well, most everyone, who has a Dell, hates it, hates working with them. Just out of curiosity, have you seen how long it takes to order a Dell online? It takes for flipping ever. Dell not having stores and premade computers and limiting the range of their line also is a debilitating factor for them. They're just plain FUGLY.

mkrishnan · Jul 21, 2006, 11:23 AM

Quote:

Originally Posted by supremedesigner

My opinion: I think most people prefer new intel over AMD b/c of power saving. I may be wrong. What do you think?

Mmmm... I'm not sure if that's related to what you quoted or not. I think most consumers could care less and don't understand the technical details, and that most IT people are slightly conservative and stick to Intel, but probably make that decision based on money more than anything else for user workstations, except when high-power computing is involved (and of course servers are a different matter).

As far as Dell's high end XPS products, I think they have nice specs but do not do as good a job at having a high-end "feel." And so they have not been succcessful at cultivating a brand that draws consumers with deeper wallets, in contrast to brands like Apple, Alienware, VAIO, and Thinkpad, which all succeed at that in different ways....

EDIT: Sorry, Ben, I totally forgot about that.

I don't know what their long term plan is. Is it just to apply Dell manufacturing and SCM to make Alienware more profitable and use Dell channels to increase Alienware volume? Alienware in contrast I think does have some leveragable brand cache with at least one subsegment of high-price customers....

Killyp · Jul 21, 2006, 11:28 AM

The problem with Dell, IMO is that there really is nothing too special about them. You look at about the most amazing thing they've done - put flashing lights on the XPS laptops. Consumers aren't that stupid, they can see flashing lights for what they are - the result of an unimaginative company trying to be cool.

AlBDamned · Jul 21, 2006, 11:31 AM

Quote:

Originally Posted by mkrishnan

Dell's long term answer was supposed to be pushing up margins with the XPS hardware... I think that seems to have fallen by the wayside. Eroding margins due to pricing pressure should hardly be a surprise. They're the ones who engineered that catastrophe for themselves....

If you read the new Dell blog, it seems they can't even deliver the new XPS stuff on time.

They are giving free upgrades to Merom though.

Jul 21, 2006, 10:06 AM	#1
simonthewolf macrumors member Join Date: May 2006 Location: Milton Keynes, UK	Trouble at Dell From today's Times: http://business.timesonline.co.uk/ar...280068,00.html Blimey, compare those figures to Apple's Q3. Perhaps it's time the company was broken up and the proceeds handed out to the shareholders? __________________ Power Macintosh G5 Dual 2.0Ghz, PowerBook G4 667Mhz DVI, Macintosh SE/30, iPod 5G 30g Say no to Franchise Football
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Jul 21, 2006, 10:18 AM	#2
Shadow macrumors 68000 Join Date: Feb 2006 Location: Keele, United Kingdom	The sooner Dell go down, the better. Long live Apple! __________________ MacBook Pro 2.66GHz C2D 8GB 128GB SSD 9600m iPhone 4 16GB
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Jul 21, 2006, 11:12 AM	#6
mkrishnan Demi-God (Moderator emeritus) Join Date: Jan 2004 Location: Grand Rapids, MI, USA	Dell's long term answer was supposed to be pushing up margins with the XPS hardware... I think that seems to have fallen by the wayside. Eroding margins due to pricing pressure should hardly be a surprise. They're the ones who engineered that catastrophe for themselves.... __________________ Mohan
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Jul 21, 2006, 10:53 AM	#3
JurgenWigg macrumors 6502 Join Date: May 2006 Location: Delaware	Don't count your chickens before they hatch there's still plenty of time for Dell to turn their stuff around, even before they're in danger of bceoming number 2 of the top 4.
	0

Jul 21, 2006, 11:04 AM	#4
p0intblank macrumors 68030 Join Date: Sep 2005 Location: New Jersey, USA	This may sound harsh, but I would love to see Dell fail. They make nice monitors, but their computers are just pure crap.
	0

Jul 21, 2006, 11:08 AM	#5
AlBDamned macrumors 68030 Join Date: Mar 2005	That's a huge drop in value and forecasts but I believe they'll pull back if they can get their products and service better. It's still a long way to the bottom.
	0

Jul 21, 2006, 11:28 AM	#10
Killyp macrumors 68040 Join Date: Jun 2006	The problem with Dell, IMO is that there really is nothing too special about them. You look at about the most amazing thing they've done - put flashing lights on the XPS laptops. Consumers aren't that stupid, they can see flashing lights for what they are - the result of an unimaginative company trying to be cool.
	0


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