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Dell's Open PC Costs More Than Windows Box

Posted by Zonk on from the odd-that dept.

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.]"

13 of 440 comments (clear)

  1. Resell Windows by ajwitte · · Score: 5, Interesting

    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
  2. To heck with Dell by Anonymous Coward · · Score: 4, Interesting

    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.

    1. Re:To heck with Dell by DrEldarion · · Score: 4, Interesting

      They do have REALLY messed up pricing, and an even more messed up coupon scheme. They'll be offering a monitor with a base sale of 25% off, and then give out coupons to get the monitor at 15% off. The coupon replaces the base discount. It's like one hand has NO CLUE what the other hand is doing, even though they're working on the same thing.

  3. Use coupon codes by timeToy · · Score: 3, Interesting

    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

  4. Re:Obvious, actually by peter_gzowski · · Score: 5, Interesting

    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
  5. Doesn't matter by Rocketship+Underpant · · Score: 5, Interesting

    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.
    1. Re:Doesn't matter by PingPongBoy · · Score: 3, Interesting

      The user is free to do with his copy

      technically if not totally legally including installation on multiple boxen. If a blank PC is considered to be just as profitable to Dell as a PC without Windows it is fairly clear that Dell must be paying next to nothing to Micro$oft for each copy.

      Micro$oft is probably regarding the supposed lack of revenues from Dell as sheer marketing cost. It's likely also that higher end machines pay off more to Microsoft though since they aren't being sold to poor/penny-pinching people.

      Corollary - what's the difference to Microsoft if they just sold Windows at very affordable prices? Standalone Windows pricing is just to appease the trustbusters

      The question begged is what is Microsoft getting out of all this? Is it really worth it to be competing with open source operating system at an equivalent price? Will the ultimate operating system be open source? If you buy from Dell you're not paying more. This is just the first PC offering from Dell with no Windows. Quite possibly the economy of scale for entry-level machines having Windows included actually cost LESS!! It's all about warranty and support infrastructure, perhaps. Let's see what happens with later machines as Moore's law drives prices lower and lower. If Microsoft seeks to build higher level software while leaving the operating system to the public domain, it'll be an interesting world.

      --
      Know your pads. One time pad: good for cryptography. Two timing pad: where to take your mistress.
    2. Re:Doesn't matter by AuMatar · · Score: 3, Interesting

      Doesnt matter- he didn't sign any contract, he didn't even click yes. Dell has no right to agree to a contract for you.

      --
      I still have more fans than freaks. WTF is wrong with you people?
    3. Re:Doesn't matter by Anonymous Coward · · Score: 3, Interesting

      You didn't buy it, you licensed it. That's the whole point behind software licensing.

      Did you sign a license? No, you bought a computer, and it's nearly impossible to buy a dell computer without windows. You can do whatever you want with everything that comes with the computer - sell it, burn it, or throw it away. It's the doctrine of first sale.

      There was a case a few years back about someone selling OEM adobe software. The guy had obtained genuine OEM adobe software and was reselling it. Adobe sued the guy, and the guy won. Even though there may be a EULA for adobe software, the guy never saw it and never agreed to it. The EULA didn't apply since he wasn't the end user.

    4. Re:Doesn't matter by Fulcrum+of+Evil · · Score: 3, Interesting

      read your windows eula buddy, or be ready to defend your rights under it it in a court of law.

      What eula? You buy the Pc, then wipe the disk. You never even saw the EULA, just sold off the software you had no use for.

      --
      "We returned the General to El Salvador, or maybe Guatemala, it's difficult to tell from 10,000 feet"
  6. Guess Microsoft Windows has really become a tax by Rolman · · Score: 4, Interesting

    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!!!
  7. Isn't this considered dumping? by SeaFox · · Score: 3, Interesting

    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...

  8. Dell routines..? by ltning · · Score: 3, Interesting

    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.