http://www.nytimes.com/2010/06/29/technology/29dell.html?hpw
Interesting story, not so much on the inferiority of Dell products, but on a corporate cover-up and the consequences of it becoming public.
It also offers an interesting alternative to the market-driven kind of theory (e.g., Dell failed at delivering "cool" in the way that Apple does) about why Dell has declined in the last decade.
Interesting story, not so much on the inferiority of Dell products, but on a corporate cover-up and the consequences of it becoming public.
NYTimes said:After the math department at the University of Texas noticed some of its Dell computers failing, Dell examined the machines. The company came up with an unusual reason for the computers demise: the school had overtaxed the machines by making them perform difficult math calculations.
Dell, however, had actually sent the university, in Austin, desktop PCs riddled with faulty electrical components that were leaking chemicals and causing the malfunctions. Dell sold millions of these computers from 2003 to 2005 to major companies like Wal-Mart and Wells Fargo, institutions like the Mayo Clinic and small businesses.
The funny thing was that every one of them went bad at the same time, said Greg Barry, the president of PointSolve, a technology services company near Philadelphia that had bought dozens. Its unheard-of, but Dell didnt seem to recognize this as a problem at the time.
Documents recently unsealed in a three-year-old lawsuit against Dell show that the companys employees were actually aware that the computers were likely to break. Still, the employees tried to play down the problem to customers and allowed customers to rely on trouble-prone machines, putting their businesses at risk. Even the firm defending Dell in the lawsuit was affected when Dell balked at fixing 1,000 suspect computers, according to e-mail messages revealed in the dispute.
The documents chronicling the failure of the PCs also help explain the decline of one of Americas most celebrated and admired companies. Perhaps more than any other company, Dell fought to lower the price of computers.
It also offers an interesting alternative to the market-driven kind of theory (e.g., Dell failed at delivering "cool" in the way that Apple does) about why Dell has declined in the last decade.