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Trouble at Dell

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.
 
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.
 
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....
 
mkrishnan said:
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....
Click to expand...

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

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

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. :eek: 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....
 
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.
 
mkrishnan said:
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....
Click to expand...


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.
 
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