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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.]"

33 of 440 comments (clear)

  1. New math.. by Brad1138 · · Score: 5, Funny

    Must be that new math I keep hearing about...

    --
    If you could reason with religious people, there would be no religious people
    1. Re:New math.. by m4dm4n · · Score: 4, Funny

      That would be the new math Microsoft keep telling us about Linux being more expensive?

  2. 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
    1. Re:Resell Windows by Afrosheen · · Score: 4, Insightful

      Building your own is great, but when you're freelancing as a consultant, and you have clients, you don't want to worry about what you build, and that's where Dell and others come in. Plus it's easy to sell people on Dell machines, at home or at offices, since alot of them already use them at work. Every time you say 'I can build one FOR you..' they get this strange look and their eyes usually glaze over. For some reason, they accept the fact that you can fix pc's but not build them.

    2. Re:Resell Windows by mystik · · Score: 5, Informative

      Not Allowed.

      Behold the OEM license, and Anti-Unbundling clauses. The software is tied to the hardware, and the license sticker is even on the unit (just the case).

      It's annoying -- but intentional -- to prevent exactly what you describe.

      --
      Why aren't you encrypting your e-mail?
    3. Re:Resell Windows by davmoo · · Score: 4, Insightful

      The only reason left these days to build your own is if you want specific components, or you just want the experience. Economic reasons to build your own died when Walmart and other big-box stores started offering PCs for $299.

      --
      I want a new quote. One that won't spill. One that don't cost too much. Or come in a pill.
    4. Re:Resell Windows by EzInKy · · Score: 5, Informative


      Thats illegal, you can't use it on any non-that-brand machine so its worthless.


      Baloney!


      District courts in California and Texas have issued decisions applying the doctrine of first sale for bundled computer software in Softman v. Adobe (2001) and Novell, Inc. v. CPU Distrib., Inc. (2000) even if the software contains a EULA prohibiting resale. In the Softman case, after purchasing bundled software (A box containing many programs that are also available individually) from Adobe Systems, Softman unbundled it and then resold the component programs. The California District Court ruled that Softman could resell the bundled software, no matter what the EULA stipulates, because Softman had never assented to the EULA. Specifically, the ruling decreed that software purchases be treated as sales transactions, rather than explicit license agreements. In other words, the court ruling argued that Californian consumers should have the same rights they would enjoy under existing copyright legislation when buying a CD or a book.

      --
      Time is what keeps everything from happening all at once.
  3. Obvious, actually by lastberserker · · Score: 5, Insightful

    Computers with Windows XP are stuffed to the roof with trialware and services that kick back the cost. Those with empty hard drives are, well, empty. What's so hard to grasp here?

    --
    My other Beowulf cluster is... er...
    1. 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
    2. Re:Obvious, actually by Verteiron · · Score: 5, Informative

      Gator hell. I've seen recent HP desktops come from Best Buy with MyWay searchbar pre-installed. Every URL visited gets passed to MyWay's servers, ostensibly to allow it to "target" the search results it displays. In reality the end-user is just bombarded with more advertising. And what's worse, many of the MyWay ads link to sites that install -really- invasive crapware like SurfSidekick.

      --
      End of lesson. You may press the button.
    3. Re:Obvious, actually by Lesrahpem · · Score: 4, Insightful

      No, I think the reason we're bitching is because we're paying more for less.

  4. 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.

  5. Re:Think they might have noticed the slashdot dire by benjamindees · · Score: 5, Insightful

    No, it's been that way for a while. The FreeDOS boxes have always (as long as I remember) been more expensive than an equivalent box with XP.

    I don't know what kind of deal they have with Microsoft to make that happen, but I suspect it is more than just the AOL and McAfee add-ons that they can bundle with XP.

    --
    "I assumed blithely that there were no elves out there in the darkness"
  6. Not the same by gcauthon · · Score: 5, Informative

    The PC with the blank hard drive appears to ship with a combo cd/dvd-rom and a fax modem. The PC with windows does not list these features.

  7. Dell's Prices by Anonymous Coward · · Score: 5, Informative

    Dell's business units are so odd. You can go on their web site and find 3 different prices for the exact same thing depending on which unit you go in, and I mean home, small business, and large. I have ordered from all over that site for personal stuff, it cracks me up sometimes. I would be interested in why that happens. I have asked our Dell rep at work, but he couldn't really give a good answer either.

  8. I Knew It! by Comatose51 · · Score: 4, Funny
    I knew it all along! Windows XP generates NEGATIVE value! Suspected by me, confirmed by Dell!

    I kid, I kid.

    --
    EvilCON - Made Famous by /.
  9. Don't even try by All+Names+Have+Been · · Score: 5, Funny

    You'll never figure out Dell's pricing policies for any given piece of hardware. It will change randomly from moment to moment. Just when you think you know how to get the best deal, they'll completely change on you. Hell, we effectively resell Dell PCs, and even *WE* can't get a straight price from our rep. Fuck, their corporate customers who buy thousands of units a year don't know how much a PC will cost until they actually get charged for it.

    Personally, I use their pricing changes as a source of entropy to help generate cryptographic keys.

  10. Re:hmmmm by IconBasedIdea · · Score: 5, Funny

    Or, if the logic of Dell is to prevail, you can sell blank versions of the same CDs for a slight premium, like $275.

  11. Well isn't a virgin worth more then a slut by SmallFurryCreature · · Score: 5, Funny

    Lets face it a PC with XP is anybody's. I wonder if this system comes in a white box to indicate its virgin status.

    --

    MMO Quests are like orgasms:

    You may solo them, I prefer them in a group.

  12. Re:Build it yourself? by BobandMax · · Score: 5, Insightful

    I buy ~250k/year of Dell PCs. We do not have the time, staffing or patience to sort through myriad component problems. They are all Dell Optiplex and Latitude machines with three year warranties and Complete Care. If it breaks, it's Dell's problem. We just don't have time for anything else. If some shop has the time to screw with this stuff, they have too many IT staff and are pissing away money for nothing.

    --

    "Computers are useless. They can only give you answers."
    -- Pablo Picasso
  13. One Page by Viceice · · Score: 4, Informative
    --
    Sometimes I wish I was a plumber, then I'd know how to deal with other people's shit.
  14. 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.
  15. Dell prices to value, not to cost. by team99parody · · Score: 4, Funny
    Of course the Windows-free one is priced higher.

    Even though Windows has a lot of cost - it adds negative value.

    Since Dell (and any company looking to please its customers) will price things based on the value the customers receive, it makes perfect sense that they have to compensate the end user for the negative value Windows inflicts on them (pain, grief, anguish, suffering).

    (seriously, however - On the Windoze box there's a bunch of third-party crap that Dell was paid to put on there - I know, I worked for a company that paid OEMs to pre-install crippleware in the hopes for upgrading -- and in effect subsidized the windows boxes. I suspect this is what's happening, and Dell's just passing on the subsidy).

  16. No, not the case by Sycraft-fu · · Score: 5, Informative

    So couple of reasons. One is simple: The DMCA. Your OEM copy of Windows will not work on a non-Dell box. To make it do so, you have to modify it and such modifications would violate the DMCA. Though I disagree with the law it currently is the law and thus if you violate it you can be subject to criminal charges.

    The other is that even without that, software is kind of special. When you use software, you actually make a copy of it to your computer, something not necessiarly permitted by copyright law. Thus the permission comes in the form of an EULA, to which you must agree or you don't have that right. Well the EULA restricts this.

    Is that legal? Well, maybe. Notice that game rental sotres don't rent computer games, just console games. The reason is, of course, concerns over copying. However console games can be, and are, copied all the time. So what's the deal? Well, likely game companies have sucessfully used the EULA argument to stop rentals. Can't be done with console games. No copying, thus no legal problems, and doctrine of first sale allows the rentals. However with PC games the copying happens, thus the need for EULA agreements, thus the problem.

    Now like I said, all that's murkeir, might be that provision of the EULA isn't enforcable. However it's all moot, given the DMCA. You can't sell your copy of Windows using the provided key, it won't work, the key is Dell only. To modify Windows to use a different key is to break the DMCA which, retarded as it is, is the law.

    1. Re:No, not the case by Arker · · Score: 4, Insightful

      When you use software, you actually make a copy of it to your computer, something not necessiarly permitted by copyright law.

      No, it is specifically allowed by copyright law, it's the normal use of software.

      --
      =-=-=-=-=-=-=-=-=-=-=-=-=-=-
      Friends don't let friends enable ecmascript.
  17. You'll never get fired for recommending Dell. by WoTG · · Score: 5, Insightful

    I wouldn't ever consider building a PC for a client these days. Why build for someone as a consultant? You're just asking for trouble. Machines have fairly high failure rates no matter what brand or components you use. I'd rather point people to Dell so that when something breaks, I'm covered. =) Besides, with PC prices the way they are, how much can you save your clients anyway? Especially once you factor in the cost of your time.

    1. Re:You'll never get fired for recommending Dell. by shaitand · · Score: 4, Insightful

      "Why build for someone as a consultant?"

      People tend to call the company who built their pc's to fix them.

      "You're just asking for trouble. Machines have fairly high failure rates no matter what brand or components you use. I'd rather point people to Dell so that when something breaks, I'm covered. =)"

      And yet, somehow, Dell seems to turn a profit on these high failure rate systems. Dell offers a 90-120 day warranty. The odds of something going wrong with a pc in that time at all, and even more the odds of something going wrong in that time that is not billable are pretty slim. If you put 20 systems in a lab something has to go wrong with each and every one that takes several hours to fix before your cash flow goes out of the green and that is just on the initial sale. Even if you broke even after hardware difficulties residual business after the warranty term will put you back into the green.

      "Besides, with PC prices the way they are, how much can you save your clients anyway? Especially once you factor in the cost of your time."

      Not much. Of course you can offer them systems with increased reliability and/or performance than Dell can. Last I checked Dell and every other major brandname use the cheapest proprietary components on the market that will get them up to the "specs" that consumers are looking for.

      The other thing to consider is that while you will not beat the price of the Dell by much at least you will keep the profits instead of giving Dell a handout. You can offer your customer a superior machine at the same or lower price AND on-call in-house expertise that Dell can't even begin to compete with.

  18. 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!!!
  19. Dell has tricky prices. by Futurepower(R) · · Score: 4, Informative

    My experience with Dell is that they have VERY tricky prices. Never buy something from Dell until you check all the coupon sites. Dell plays the game of having several divisions that price the same items differently. Prices sometimes fluctuate at each division more than once in a month.

    Basically, I have found Dell to be a very abusive company. The only reason I would buy from them is if they have something not available from somewhere else, such as the 2405FPW 24 inch LCD monitor made by Samsung and BenQ.

    If you do business with Dell, get a written warranty.

    Be careful about Dell employees. They sometimes act for themselves and against the interest of their company. Talking to Dell is like going into a rough neighborhood.

    My experience is that Dell is undergoing the social breakdown that is happening in other parts of the United States. One big example of the general breakdown is discussed in this transcript and video: Ike Was Right About War Machine. ("Ike" is former U.S. President and former Supreme Commander of Allied Forces in Europe General Dwight D. Eisenhower.)

    See also Andy Rooney speaks out against the war in Iraq.

  20. Informative? Plain old wrong. by Kjella · · Score: 4, Informative

    Is that legal? Well, maybe. Notice that game rental sotres don't rent computer games, just console games. The reason is, of course, concerns over copying. However console games can be, and are, copied all the time. So what's the deal? Well, likely game companies have sucessfully used the EULA argument to stop rentals. Can't be done with console games. No copying, thus no legal problems, and doctrine of first sale allows the rentals. However with PC games the copying happens, thus the need for EULA agreements, thus the problem.

    May I direct you to Exclusive rights in copyrighted works. I quote: "(3) to distribute copies or phonorecords of the copyrighted work to the public by sale or other transfer of ownership, or by rental, lease, or lending;" Nothing to do with copying. Nothing to do with EULAs. Not permitted by doctrine of first sale. Rentals are specifically named as an exclusive right. The console game companies want to license that right, the PC game companies do not. That is all.

    --
    Live today, because you never know what tomorrow brings
    1. Re:Informative? Plain old wrong. by Jah-Wren+Ryel · · Score: 4, Insightful

      May I direct you to Exclusive rights in copyrighted works. I quote: "(3) to distribute copies or phonorecords of the copyrighted work to the public by sale or other transfer of ownership, or by rental, lease, or lending;"

      May I direct you to Limitations on exclusive rights: Effect of transfer of particular copy or phonorecord. I quote: "a) Notwithstanding the provisions of section 106 (3), the owner of a particular copy or phonorecord lawfully made under this title, or any person authorized by such owner, is entitled, without the authority of the copyright owner, to sell or otherwise dispose of the possession of that copy or phonorecord."

      In other words, while the owner of the copyright can license for rental, if they sell the copy instead of merely renting it, then the right of first sale says they no longer have control over the where/what/when of that copy.

      --
      When information is power, privacy is freedom.
    2. Re:Informative? Plain old wrong. by MoogMan · · Score: 4, Funny

      Well, I'm glad we all cleared that up. Now I really know what I'm doing.