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Dell Rethinking the Direct-Sales Market

Dell has always sold directly to consumers via their web site and phone operations; it's a basic element of their business. Chairman and chief executive Michael Dell is now conceding that the company may need to rethink basic practices by considering alternative methods of selling their products. While initially no specifics are given, the thought seems to be than eventually the company will begin working with a retail chain. "Dell's direct model came under pressure as the market for PCs shifted to notebooks from desktops last year. It is harder to custom configure notebook computers, so they had to be manufactured in advance, which lost Dell some of its cost advantage. In addition, consumers were showing a preference for touching and feeling a notebook PC before buying it."

14 of 278 comments (clear)

  1. Dell direct sales by Anonymous Coward · · Score: 4, Informative

    Dell has always sold directly to consumers via their web site and phone operations;

    No they haven't. Dell got their start by selling through smaller computer chain stores before their direct phone/catalog sales and the invention of the WWW.

  2. Enclosures matter in notebooks... by tomocoo · · Score: 5, Insightful

    Let's not forget the fact that while Dell laptops are oftentimes nice machines, their enclosures are hideous, clunky pieces of plastic that can't hold a candle to Thinkpads or Macbooks.

    1. Re:Enclosures matter in notebooks... by garbletext · · Score: 4, Informative

      why doesn't my Dell have 2-finger trackpad scrolling? Apple has a patent (http://www.macobserver.com/article/2006/10/09.2.s html/) on that, and would likely enforce it. Actually, some new synaptics touchpads support the feature in hw, although the functionality isn't there in the windows drivers; check out the X11 synaptics option "TwoFingerScroll".
  3. seems worse by Original+Replica · · Score: 4, Insightful

    How do you stock up to date hardware in brick and mortar stores? I never buy from physical stores because everything is lagging 3 months behind in price and technology.

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    1. Re:seems worse by Jherek+Carnelian · · Score: 4, Insightful

      How do you stock up to date hardware in brick and mortar stores? I never buy from physical stores because everything is lagging 3 months behind in price and technology.
      Thus putting you somewhere near the 99th percentile of the general pool of home PC purchasers. For everyone else, they won't even notice the difference. That's one reason why HP has been kicking Dell's ass in the home pc market recently.
  4. Re:That was quick... by kartan · · Score: 5, Funny

    someone give this guy a cookie.

  5. That is a mistake by WindBourne · · Score: 4, Informative

    What they need is to have new models. The difference between theirs and say a cheap chinese model is minimal. They need to start innovating again. If they start selling Linux, that is to their advantage. If they developed new ideas, rather than just rebranding others, that is to their advantage. But as it stands, Dell will continue losing ground esp if they start selling their system via regular sales channels.

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  6. Re:To me, it says more about the laptop market by hey! · · Score: 4, Insightful

    No, the reason laptops are popular with employees is that you can work any time you want.

    The reason laptops are popular with employers is that you can work any time they want.

    The reason that desktops used to be popular is that they used to much cheaper, and they were easier to repair which is important when computers are expensive. Neither of these apply so much. It is quite practical to replace laptop every two years or so, which is about right given technology cycles driving hardware requirements, and the fact that you've been working every waking moment.

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  7. Dell's slide... by raydobbs · · Score: 4, Interesting

    Coming from someone who used to work at a retailer who serviced machines - Dells are the WORSE. The quality of their product has gone downhill ever since the late ninties - and now are just horseshit. Specialized cheap hardware with crappy support. They reap what they sew in this case. People have stopped shopping with Dell not because they are direct-to-customer - they have stopped because the product is poor, and there are better alternatives now.

    1. Re:Dell's slide... by bilbus · · Score: 4, Insightful

      Bullshit, dell is just as good as anyone else ... they use the same components as hp and ibm. Hell everything has broadcom now. I have never had a problem with a dell .. that was not easly fixed. As for service you do know EVERY maker outsources their support to local repair shops. So if you have a problem its the local serivce shop thats to blame, talk to your rep and get that fixed. I like dell because i can call one person/team to order, ask questions or get support. Try that with IBM. With Toshiba if you bought it from a store you need to find your paperwork before anyone will help you. With HP you can get support from them directly but you need to buy from resellers .. and dell's prices are almost always better. As for the earler poster ... dell has been a little behind in invoation, but the ultra highend server market is not where dell wants to be. Their servers are aimed at the low to mid range markets ($1,000-$20,000). If you want a ultra high end server IBM/HP is the leader. As for linux ... are you kidding me there is NO market for linux on the desktop. As for servers why would they preinstall linux for you, you are going to format and install your choice on there anyhow, you can get the servers with no os installed.

    2. Re:Dell's slide... by Jeff+DeMaagd · · Score: 4, Insightful

      Bullshit, dell is just as good as anyone else ... they use the same components as hp and ibm. Hell everything has broadcom now.

      Using the same chips alone doesn't mean that the entire systems have comparable build quality, if that's what you are implying.

  8. Yeah, they're butt ugly. by Kadin2048 · · Score: 4, Interesting

    Yeah, I find it really odd that while the rest of the world seemingly moved on, Dell still makes laptops that are vaguely reminiscent of plumbing fixtures.

    Squarish corners, clean, straight lines, and monotone color schemes are in; Dell's laptops all cheap and plasticky compared to Apple's or IBM/Lenovo's. In particular, the two-tone color scheme they seem to like just emphasizes the seams in the case, rather than minimizing them like a single color (white, black, silver -- doesn't really matter) would. And round corners say 'toy' while square ones say 'tool,' which I think is something they ought to be going for.

    What's particularly odd is that although (at least in the black color), the better IBM/Lenovo laptops really haven't changed too much in external appearance over the years -- their styling is pretty consistent -- Dell's somehow end up looking more "dated," even though they've presumably been designed more recently.

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  9. brainstorming here - one thing Dell could do is by Anonymous Coward · · Score: 5, Funny

    ... liquidate the company's assets and distribute the proceeds to the shareholders.

  10. Re:That was quick... by Divebus · · Score: 4, Funny

    We shall now read from the book of Jobs, chapter 5:21:01 - "thou shalt go forth and multiply thine retail presence in upscale shopping areas, or within 200 yards of any Starbucks, and thou shalt be rewarded with massive growth for thine stockholders."

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