Will Dell go bust?

Discussion in 'Apple, Inc and Tech Industry' started by AlBDamned, Mar 1, 2007.

  1. AlBDamned macrumors 68030

    AlBDamned

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    #1
    More profit warnings reported today follow reports in some papers that Dell could go bang have really made me think.

    If Dell has to restate earnings, gets slammed by the feds and continues to take huge earnings blows, will it (can it?) recover?
     
  2. miloblithe macrumors 68020

    miloblithe

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    #2
    Doesn't seem like an industry that leads to a company evaporating like Enron. Dell is in decline though, and eventually it's pretty likely some other company will just gobble them up when the price seems right.
     
  3. FF_productions macrumors 68030

    FF_productions

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    #3
    We all wish it was easy as that.
     
  4. AlBDamned thread starter macrumors 68030

    AlBDamned

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    #4
    Yeah that's true, you don't hear of too many going bust like this, although TiNY did a few years back

    That would make more sense, but who'd pay money for such a sinking ship? I guess they have the infrastructure and supply chain set up, not to mention buying power although in such circumstances that would diminish.
     
  5. AlBDamned thread starter macrumors 68030

    AlBDamned

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    #5
    Another quality post by Nazmac21 :rolleyes:
     
  6. Sun Baked macrumors G5

    Sun Baked

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    #6
    More proof that quantity does not equal quality, unless your ultimate goal is a manure business.

    [​IMG]
     
  7. AlBDamned thread starter macrumors 68030

    AlBDamned

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    #7
    And this guy deals a lot of manure.... ;)

    On the other hand, Dell could just go and buy Acer, which apparently is a snip at US$4 Billion...

    "Dell 2.0..." God help us!
     
  8. Dont Hurt Me macrumors 603

    Dont Hurt Me

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    #8
    Dell dips 4% and were talking its demise?:D Thats funny. Also Dell does something Apple cant or wont and thats build the machine for the customer. Thats a huge advantage in the market place.
     
  9. GoCubsGo macrumors Nehalem

    GoCubsGo

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    #9
    Of course they'll be fine. **** Apple survived the crap they pulled.
     
  10. AlBDamned thread starter macrumors 68030

    AlBDamned

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    #10
    I agree it might be premature - but still doesn't stop lots of papers suggesting the idea. ;)

    It's just difficult to see a way they can stop the slide at the moment. The options thing has the potential to really mess things up (and for Apple too.).

    Incidentally, this isn't a Dell vs Apple debate...
     
  11. Dont Hurt Me macrumors 603

    Dont Hurt Me

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    #11
    Dells Dip along with others may have a lot to do with Vista's delay after delay after Delay. I know this isnt a Dell vs Apple debate but I use both and really like my Dell Tower. I wish Apple had a Mid grade tower but they just dont want to build one.
     
  12. dmw007 macrumors G4

    dmw007

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  13. AlBDamned thread starter macrumors 68030

    AlBDamned

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    #13
    As you say, this isn't a question of Dell vs Apple... Dell has been in decline for a lot longer than this past quarter and I doubt Michael Dell would take the reigns if it was just a case of riding out any Vista delay blips (even though that would be a bad plan too as Vista appears to be bombing depending on which reports you read).

    There's clearly big problems at the company. You could even draw some tenuous comparisons with Dell in 2007 and Apple in 1997: Cash reserves in the bank but the actual business is dying a death.

    What I'm asking is that if they continue as they are and then get hit with something on the backdating scandal that knocks say 50% off their value or more, what could happen?
     
  14. Spock macrumors 68000

    Spock

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    #14
    I know how you feel, I want Aston Martin to make a nice car with a Kia price but they just dont want to build one.
     
  15. aristobrat macrumors G4

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    #15
    Not much of an advantage in the market place if the company can't make enough money doing it to stay afloat. :confused:
     
  16. Abstract macrumors Penryn

    Abstract

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    #16
    A huge advantage in what way? It's nice for the customer, but it may be costly for Dell.

    I don't know if Dell is in trouble, but there are a lot of businesses that come back after hitting a low. And remember, some computer companies are making a profit, and Dell sells essentially the same product as everyone else. So what's differentiating these companies is.........name? Reputation? Cool factor? Product aesthetics?

    Dell still sells computers that are 95% the same as everyone else. All the computers nowadays are so similar that slight improvements in things like service and reliability may cause their rep may go back up.
     
  17. dukebound85 macrumors P6

    dukebound85

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    #17
    yet they make a car with a price corresponding to a used kia (mac mini)

    thats a pretty bad analogy
     
  18. AlBDamned thread starter macrumors 68030

    AlBDamned

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    #18
    I think it's a mixture of lacking cool and poor customer service. They're really working on the latter apparently - it's a priority. But then they say that and days later have another complete fiasco with their Vista upgrade scheme.

    I'm not sure you can make those mistakes when you're doing well, let alone when you're doing badly (and the company is doing badly by its own standards - look at this recent history of business stories).
     
  19. Nermal Moderator

    Nermal

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    #19
    Living in a country where Dell is not and never has been #1, I don't actually see them as too much of a threat :)
     
  20. AlBDamned thread starter macrumors 68030

    AlBDamned

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    #20
    i think these days they're not number one anywher, but it's only really in the US and UK where they've been at the top or close to it before. That's part of the problem apparently.

    HP and co. are better at being a global business, whereas Dell relies on the US market.
     
  21. Sun Baked macrumors G5

    Sun Baked

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    #21
    I think Michael Dell likes busts on others, not himself -- so it is unlikely he will go busty.
     

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