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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.]"

17 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
  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?

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    chown -R us ~you/base
    1. 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?
    2. 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?

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    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.
  4. 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"
  5. 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.

  6. 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.

  7. 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.

  8. 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.

  9. 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.

  10. 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
  11. 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.
  12. 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.

  13. 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.