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Dell's Marketshare Decline Due to Intel?

timeOday writes "News.com reports that Dell's PC sales are growing more slowly than the overall PC market for the first time on record. Gartner's Charles Smulders blames Dell's decline on their allegiance to Intel, and cites Hewlett Packard's embrace of AMD as a key to their growing sales. Can Dell continue to shun AMD, or is a breakthrough imminent for the #2 chipmaker?"

21 of 275 comments (clear)

  1. Waitaminnit by popeguilty · · Score: 3, Interesting

    Is it really Dell's allegiance to Intel, or is it market saturation?

    1. Re:Waitaminnit by walt-sjc · · Score: 5, Insightful

      OR, is it the fact that Dell has alienated their customer base with shoddy products and outsourced call centers (sales, service and support) staffed by people that don't have the tools or skill to do the job?

    2. Re:Waitaminnit by jaseuk · · Score: 5, Insightful

      Most of Dells business is corporate. We are not a particularly large organisation but we spend close to $400K a year with Dell. Our main concerns are that the kit is reliable, cheap, hardware platform is relatively stable and support is good. Dell gives us all these things, the chip and technologies used are way down the list of our concerns.

      The likely reason for slowed growth is that PCs are lasting longer. We have 5 year old PCs that are still very usable, step back a few years and the upgrade cycles were faster as the tech moved along. Things have been static for a while now, anything over 800Mhz is good enough for most modern applications and a fair amount of games.

      Perhaps the real reason for the slow down is the Vista delay. There is no external push from Microsoft to force people through a refresh to get the latest toys.

      Jason.

    3. Re:Waitaminnit by hentaidan · · Score: 5, Funny

      Dell has alienated their customer base

      Well, now that they've bought Alienware, it's not surprising.

    4. Re:Waitaminnit by Mister+Whirly · · Score: 3, Insightful

      It really depends on which branch of Dell you are dealing with. Home and Small Business tech support is outsourced to India and isn't very pleasant to use from what I have heard/read. The Corporate and Education branch tech support is all done from the good old USA. I have had plenty of experiences dealing with them, and out of 25-30 times I have called upon them in the last 5 years, only once was the experience less than stellar. 99% of the time I am on hold less than 5 minutes and have never been given the "third degree" about replacement parts - I tell them what failed and how I tested it, they send the part out (or one time a technician to replace a motherboard in a laptop) and I have it the next morning. I'm pretty sure I still have a few bungled hard drives and some memory I was supposed to send back, but never bothered - and never heard a word from Dell bugging me to send them back. These are my experinces with the Corp and Educational branch of Dell, with other branches, YMMV.

      --
      "But this one goes to 11!"
    5. Re:Waitaminnit by rsidd · · Score: 3, Insightful
      The likely reason for slowed growth is that PCs are lasting longer.

      According to TFA, the PC market is growing very nicely thank you (13.1% in the last quarter worldwide, 7.4% in the US), and Dell's competitors (particularly HP) are benefiting. But Dell's growth was only 10.2% worldwide, and only 0.2% in the US. TFA goes on to say that for several years Dell has grown substantially faster than the overall market, so this year's change is significant.

    6. Re:Waitaminnit by emir · · Score: 4, Insightful

      You are missing the point.

      "The likely reason for slowed growth is that PCs are lasting longer.".

      This is valid point but it affects overall PC market not only one brand. The article states following:

      .... growing more slowly than the overall PC market...

      --
      -- http://electronicintifada.net --
  2. And Dell wonders by Shadow+Wrought · · Score: 3, Insightful

    Why gamers don't take them seriously. Hopefully they'll be content to let Alienware do their thing and won't try and foist Intel on them.

    --
    If brevity is the soul of wit, then how does one explain Twitter?
  3. Perhaps by Luscious868 · · Score: 4, Insightful

    Could it be because Dell sucks and people are sick and tired of calling tech support only to speak with someone they can barely understand from India who claims his name is "Bill".

    1. Re:Perhaps by LWATCDR · · Score: 3, Informative

      Actually Dell home support is in India. There small business support is often in the US. I have a friend that works for Dell in Idaho doing support for servers.

      --
      See my blog http://ilovecookes.blogspot.com/ for light hearted technical information.
    2. Re:Perhaps by walt-sjc · · Score: 3, Interesting

      PART of the small business support is in the US. The whole sales and customer service small business group is not. You only get the full US team in the large enterprise group.

    3. Re:Perhaps by LWATCDR · · Score: 4, Insightful

      Well there is an old saying. You get what you pay for. If you want good tech support that isn't offshore then you better be willing to pay more than $400 for a full PC.
      Good people cost money.
      Heck even bad people cost money.

      --
      See my blog http://ilovecookes.blogspot.com/ for light hearted technical information.
    4. Re:Perhaps by grungebox · · Score: 4, Funny

      So that's where Sameer ended up after Initech burned down.

  4. Marketing Failure by Penguinoflight · · Score: 4, Interesting

    The problem here is Intel doesn't have a processor that the public views as solid and powerful. They have a processor that fits that description (dual core mobile), but they try to push P4s at people instead.

    Dell is only failing because they expect Intel to do all their work for them. If they want people to get back on board they'll have to convince them that their systems perform well.

    Their models are so unlinked to the processors that they carry that this will be a disaster for dell to handle simply because they have a stupid branding scheme. Moving to AMD wont help dell, but solidifying their position will.

    This whole summary is based on a false premise. I for one think it's absolutely absurd to suggest that following Hewlett Packard's business plan is a good idea. If you do that everyone will just think you're the other HP.

    --
    "And we have seen and do testify that the Father sent the Son to be the Savior of the World"
    1 John 4:14
  5. Has their reputation has caught up with them? by BadAnalogyGuy · · Score: 5, Interesting

    Dell has long been the leader because they have been able to ship easily configurable PCs quickly and dependably to their customers. Now anyone can do that. They used to offer premium discounts on their PCs. Now anyone can do that.

    Dell has always used very marginal hardware in several levels of their lineup. Perhaps this is what has caught up with them. Another company who used to sell well until their reputation caught up with them was Packard Bell. If you keep shipping inferior product, at some point you will get called on it.

    Now, does it hurt that they need to keep prices high in order to offer genuine Intel Inside PCs? You bet. But that's just a straw on the camel's back. It was the heavy load that broke the camel in the first place.

  6. dell's reputation by SolusSD · · Score: 3, Insightful

    I believe it has more to do with Dells ailing reputation than it does not sticking to intel. The fact is the *quality* that was once associated with Dell isn't really there, and hasn't been for a long time, and consumers are wising up to this. Plus, there is some good competition out there for dell in the low end computer market. emachines, for example.

  7. Apple to be the New Dell? by jellomizer · · Score: 4, Insightful

    It almost seems like an unnatural progression but it is possible.
    Back in the 8088s - 286 days IBM was King of the PCs By the 386-486 Gateway Became king then Pentium Dell took over. It wasn't because of price At the time each respective vender was priced a bit more the the rest. Then after they became king of the mountain the only way they could still compete (More) is by price shaving which lowered its quality so The next guy came in selling a higher quality product at a slightly higher price and the customers were happy with it and by word of mouth they became #1.
    I remember people going I am going to get a Gateway because I heard they are reliable for their 486. Then by 1999 I hear people go Next Time I am going to get a Dell because this Gateway is a piece of crap (after having to swap 3 drives and a motherboard) In a year. Now Dells quality is getting more and more shaky and their support is getting more cheap. So who will be the next Dell? Right now the best I am hearing that Apple Computers while may cost a bit more are of better quality and with the Intel Chips you can put windows on it as a fail safe emotional device. But It could also be HP/Compaq turn if they get on the Gun and made better PCs. I originally had AlienWare as the next Dell but Dell just bought them so who knows. But I don't think AMD has anything to do with it, it is about Quality not manufactures.

    --
    If something is so important that you feel the need to post it on the internet... It probably isn't that important.
  8. Dude... by zpeterz63 · · Score: 3, Funny

    Dude, no one's getting a Dell.

  9. Or maybe because they're not upgradable by Rob+the+Bold · · Score: 3, Insightful
    On top of the inferior components, it's tough to upgrade components in many Dells. Even some Dell desktops built in the last 2 years don't have USB 2 ports. This can be a real hassle when connecting a newer printer/scanner/etc. And some of their cases make it hard to find commodity expansion cards, due to lack of slots or lack of headroom in the "sleek" cases. Many of the "original equipment" components have support only for the original OS installed on the box, so OS upgrades are a problem, too.

    I understand that Dell would like you to simply replace the box more often, that's in their own interest. But it's in my own interest not to recommend Dell to people to whom I provide "informal" tech support.

    --
    I am not a crackpot.
  10. ALL consumer computers by major vendors are shoddy by einhverfr · · Score: 3, Informative

    Dell is no exception. Indeed, I think compared to many other vendors they are not that bad in terms of actual hardware. Their support on the other hand is absolutely horrible. I have had several customers who have had to order replacement parts and it is a pain. I can expect to spend on hour on the phone to order a replacement Windows CD or a heat sink retention assembly. That time gets billed to my customers. Parts replacement up until recently was handled in the US but that too has been offshored to India.

    Of course hardware replacement is the exception rather than the rule, so generally, I am still comfortable recommending Dell with the caveat that they are better to pay for my support services than try to call Dell.

    --

    LedgerSMB: Open source Accounting/ERP
  11. Well, when people ask me by phorm · · Score: 3, Informative

    As a fairly well-known technician hereabouts, I'm often asked for advice about purchasing systems, particularly laptops, etc.

    Back in the day, I might have recommended Dell. Their laptops were fairly well features, reliable, and competetively priced. Note that the AMD/Intel difference might place into the last factor nowadays...

    Anyhow, my more recent experience with Dell has been just as indicated: they've ridden their previously decent reputation for awhile but now their crappy call-centres, incompatible parts, and not-so-great quality is starting to bite them. Dell computers are getting more and more cheap nowadays, and that's in quality as well as price.

    Now let's look at some of the others:
    - IBM systems (up until Lenovo, who I don't have too much experience with recently) are generally reliable but less-featured (esp with the small HDD sizes)... still I'd say they are or were good for the office types who wanted a system that would keep on ticking.

    - I haven't had many problems with Toshiba laptops, other than the gazillion little tray icons that the have loading at startup to control the touchpad/wireless/burner/etc settings. I turn most of the unnecessary ones off though, and lots of laptops have 'em... so no biggy. The newer laptops seem a bit more thin/plasticy though so I'll be keeping an eye on them, but they've been good so far other than a few here at the office that have been shitkicked (big big scuffing marks).

    - HP: Well, I'm using one now. I've got one at home. The home model (ZD7000) has a built-in defect wherein it doesn't like having two sticks of RAM in with high-memory graphics/etc applications (spontaneous reboots). Not great, but that's the only model where I've seen that issue and haggling with HP eventually scored me a free 1GB stick of RAM for that laptop. It works fine for me, and despite being lugged around regularly it's been durable. My office-style work compaq (NX8220) aside from giving me nightmares configuring the ATI graphics card, has been both reliable and durable as well. AMD64 processors in the newer compaqs (and me being a linux user) scores personal points and recommendations for other linux users (such as at work), but not recommendations for the windows users. Compaq laptops also were known to be not great in quality before, but that seems to have quite improved with HP making them.

    - Acer: You get what you pay for. Acer's have quite a lot of features for your buck. I've also seen generations spanning three years that had consistant power unit/modulator issues, and quite a few with screen burnout. However, I might add that I do have a (non-laptop) Acer LCD at home, and it's holding up nicely, so maybe they're improving in that area... however the plasticy feel and the rumours I've heard about HDD burnout make me tend to say "whatever you get, try to avoid Acer" to most people who ask advice.

    - Sony: When you buy Sony, you're buying a brandname. And proprietary parts. And a sinking brandname. Overpriced and underperforming are usually two good words
    Now, back to desktops. I haven't seen too many Dells explode lately but when I do look in them I find relatively cheap parts (motherboard) and massive compatability issues with standard parts. Floppy drives won't fit properly behind the happy little Dell bezels, power supplies can be funk or custom, and sometimes even PCI/etc cards don't seem to go in right. Sure, you can buy a cheap Dell machine, but upgrading or adding/repairing any parts is oftimes a major pain.

    I wouldn't actively recommend against Dell, but I'd still advise caution to potential Dell buyers, and that's a step down from the days when I happily promoted how my little Dell laptops kept on kickin' (hell, some of the older P-II era ones are outlasting the more current gens)

    You can on