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AlBDamned

macrumors 68030
Original poster
Mar 14, 2005
2,641
15
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?
 

miloblithe

macrumors 68020
Nov 14, 2003
2,072
28
Washington, DC
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.
 

AlBDamned

macrumors 68030
Original poster
Mar 14, 2005
2,641
15
Doesn't seem like an industry that leads to a company evaporating like Enron.

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

Dell is in decline though, and eventually it's pretty likely some other company will just gobble them up when the price seems right.

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.
 

Sun Baked

macrumors G5
May 19, 2002
14,941
162
Another quality post by Nazmac21 :rolleyes:

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

attachment.php
 

Dont Hurt Me

macrumors 603
Dec 21, 2002
6,055
6
Yahooville S.C.
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.
 

GoCubsGo

macrumors Nehalem
Feb 19, 2005
35,742
155
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?

Of course they'll be fine. **** Apple survived the crap they pulled.
 

AlBDamned

macrumors 68030
Original poster
Mar 14, 2005
2,641
15
Dell dips 4% and were talking its demise?:D Thats funny.

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...
 

Dont Hurt Me

macrumors 603
Dec 21, 2002
6,055
6
Yahooville S.C.
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.
 

AlBDamned

macrumors 68030
Original poster
Mar 14, 2005
2,641
15
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.

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?
 

aristobrat

macrumors G5
Oct 14, 2005
12,292
1,403
Also Dell does something Apple cant or wont and thats build the machine for the customer. Thats a huge advantage in the market place.
Not much of an advantage in the market place if the company can't make enough money doing it to stay afloat. :confused:
 

Abstract

macrumors Penryn
Dec 27, 2002
24,889
921
Location Location Location
Also Dell does something Apple cant or wont and thats build the machine for the customer. Thats a huge advantage in the market place.

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.
 

AlBDamned

macrumors 68030
Original poster
Mar 14, 2005
2,641
15
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.

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).
 

AlBDamned

macrumors 68030
Original poster
Mar 14, 2005
2,641
15
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 :)

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.
 
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