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Dell's Open PC Costs More Than Windows Box
fist_187 writes "In this article at The Register, they show thath Dell's Open PC costs more than a PC shipped with Windows XP. That's right, getting a PC with a blank hard drive costs more than the same hardware running Windows XP." From the article: "As it turns out, Dell's sales staffers have a secret web page for the product that you can't find with normal search tactics. A kind lass we'll call 'M' pointed us here. On this site, Dell presents a couple different versions of the mysterious E510n. The lowest-end system starts at $774 and is exactly like the boxes above - including the free flat panel - except it has 512MB of memory. For some reason, Dell told reporters that the box starts at $849 - yet another one of the odd sales tactics surrounding this "open source" kit. [Following the publication of our story, Dell raised the price of the PC back up to $849. See the sales pages below for the original $774 price comparisons.]"
So.. the logical thing to do is buy the PC with Windows and then resell the Windows license. Or is that not allowed?
chown -R us ~you/base
Seriously. If there's one company in the world which would win an obfuscated price contest, it's Dell. Circuitous menus that seem to simultaneously tweak prices and options depending on who you are and where you're from is deeply suspect. You never get the actual price on anything until you're ready to punch in your credit card number. Advertised prices are pure fiction. I cannot imagine any reason for being so inconsistent about pricing. It's dishonest. I no longer do business with them.
They should offer a third option to get the system with everything including windows as a 90 day trial. That would be the cheapest system possible!
Dell computer are like American cars, you can always find a deal, you will be crazy to buy a Dell computer, any Dell, Desktop or Laptop, at the official price; they always have a ton of rebates and other "special" or coupon codes all the time.
For instance right now they are running a sale on the excellent UltraSharp 2005FPW 20" Widescreen LCD Monitor for $394.35.
A good place to find about theses deal is at this page: http://www.gottadeal.com/Deals/Store/dellhome
We're bitching because we don't want to give Microsoft an automatic cut of every PC sale on the planet. Every PC sold by Dell is $50-$90 in MS's pocket (all numbers pulled from the recesses of my memory, so someone can correct me if I'm off). Other posts have suggested that this cost is recovered by companies who pay Dell to put trial versions of their software on the computer. It doesn't seem enough to account for $50-$90 + $75 per PC, but I suppose this could be the case. I would prefer that Dell just come out and say that the "Premium Software and Security" that comes with the PC is really just commercials, and not some actual value that is being added to the computer.
Wasn't there some period of time where you could redeem unused Windows XP licenses for cash from Microsoft? Whatever happened to that?
"Now gluttony and exploitation serves eight!" - TV's Frank
It doesn't matter. First sale doctrine says you can re-sell anything someone else has sold to you. That includes your software, no matter what some silly sticker on your computer says. The only party facing any restrictions is Dell; their contract with Microsoft says they have to bundle the cheap OEM version of Windows with a computer and not sell it separately. The user is free to do with his copy as he wishes.
He who lights his taper at mine, receives light without darkening me.
I guess Microsoft Windows has really become a tax, when you see manufacturers doing similar things to what they do to avoid paying a duty and convert that to profit instead of passing the savings unto the customer.
For all we know, it's supposed to be the other way around, because Microsoft shouldn't be offering the nice and heavy OEM discount to Dell anymore since they're violating Microsoft law by not selling PCs exclusively with Windows. Of course, most probably Dell is doing this on purpose, the ulterior motive being to put some pressure on Microsoft or other PC manufacturers.
It's a strange world we live in...
- Otaku no naka no otaku, otaking da!!!
The FreeDOS boxes have always (as long as I remember) been more expensive than an equivalent box with XP.
I don't understand why this is allowed to begin with. Wouldn't this be considered Microsoft (or Dell) "dumping" their operating system if they make consumers pay more to not get it. With the computers shipping with an operating system out of the mailing box, an alternative OS has a harder time even getting a trail run on the machine. Even if someone was specifically interested in an alternative OS, they would buy the Windows-preinstalled machine because it costs less. Then, well they could reformat the drive and install SuSe, Linspire, ect. But the machine is ready to go right now...
Can someone please explain to me one thing:
Why was I told, by a Dell sales representative (our key account manager, actually), that "if I wanted to have a Matrox dual-DVI G650 card with my computers, I would *have* to accept that they came with WinXP preinstalled"??? I asked back, what does a piece of hardware have to do with any piece of software. And why on earth do they offer (now, but not when we placed our first batch of orders) a dual-DVI ATI card, for about half the price, WITHOUT requiring a WinXP installation?
Let me try to get this straight:
- I order a clean PC, and tell them I want a Matrox G650 card preinstalled
---> No can do, if you want the Matrox card preinstalled, you need XP preinstalled.
- I order a clean PC, and tell them I want an ATI Xwhatever card preinstalled
---> No problem, do you want FreeDOS with that?
And to top it off: I COULD have the Matrox card, OF COURSE, but then I'd have to install it myself.
Yea right, install a frikkin' gfx card in 60 computers, thereby ruining much of my warranty - up yours.
Puzzled, I am.
Love over Gold.
You can buy Apple computers without an OS on them? I thought all Apple computers came with the proprietary OS X preinstalled. So, no different from a Windows XP box, if you want to run Linux - you're still paying* for an OS you don't need.
* Yeah, I know what this article's about. Nevertheless.
Sure but you could pretty easily sell of the radio that you replaced to a friend who has a broken one or something. You can't do that with Windows.
In other words, even though you replaced that radio, it still has VALUE. Can't say the same in the software world.
The simple answer is that Dell figures it makes more money this way. They have some fancy pricing algorithms that adjust prices very frequently depending on all the data that they know (and you don't).. Details of which models are selling well, what their suppliers are charging this week, what their inventory is, and not least, how "price elastic" different classes of customers are.
They are banking that most customers have not nearly enough information to find the best value, by comparing all the different models and options and by checking all the different entry routes into the system (personal, small business, etc.).
It's like airline seat pricing, another great example of free market exuberance. (Look where it's getting them.)
Fiat Lux.
I work as an IT consultant, often helping small buisness purchase computers. Dell's pricing has been a nightmare forever. NOTHING is the same price ever. Identical Latitude and Inspirion laptops cost completely different prices, as with Optiplex and Dimension desktops. Some days theres a free monitor, printer, ect, but some days, for the same price, there is nothing. And identical computer sometimes cost different prices depending on which link you click.