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Dell Plans to Sell PCs at Wal-Mart

Posted by Zonk on from the just-a-bit-outside-the-norm dept.

DJAdapt writes "In a departure from Dell's approach of selling machines only directly to customers, a Dell spokesman said Thursday that the computer maker will begin selling two of its Dimension desktop computers in about 3,000 Wal-Marts beginning June 10. Dell spokesman Dwayne Cox said the Wal-Mart deal 'represents our first step' into global retail. 'Customers want more and new ways to buy our products, and we plan on meeting their needs on a global level,' Cox said. 'Offering Dell Dimensions in Wal-Mart is a great example of this approach.'"

15 of 221 comments (clear)

  1. Increase sales volume, destroy the brand by traindirector · · Score: 4, Insightful

    This screams "We want to be the #1 North American computer seller again and we'll just have to deal with the negative effects of that on margins and brand perception".

    I'm sure they'll sell a ton of these because of the nature of Wal-Mart, but this seems like a horrible move in terms of the perception it will create about the Dell brand. I can see those who know little about computers who are looking for quality rather than bargain basement pricing steering away from Dell because they will be the new "cheap Wal-Mart computers". Dell will surely be offering low-end models and will make even less on them because a portion of the purchase price goes to Wal-Mart.

    I imagine they're going with Wal-Mart because

    • Wal-Mart takes less of their profit margin than a Best Buy or Circuit City
    • it's a quick way to sell a lot of computers
    • pushing up sheer quantity of computer sales to achieve the highest number is their primary goal at the moment.

    Either I'm missing something or this is a short-sighted move.

    1. Re:Increase sales volume, destroy the brand by SEAL · · Score: 5, Insightful

      Either I'm missing something or this is a short-sighted move.

      You're missing the minor point that HP is killing Dell lately, and HP sells most of their computers through traditional brick&mortar channels. Dell is trying to get back in the game.

  2. Will they offer Ubuntu machines at Walmart ? by the_rajah · · Score: 3, Interesting

    I suspect the answer will be no, but a geek can always hope.

    --


    "Do the Right Thing. It will gratify some people and astound the rest." - Mark Twain
  3. But will they run Linux? by solevita · · Score: 4, Interesting

    Wow, a genuine reason to ask the question, you don't get one of those everyday!

  4. Finally they figured it out by Anonymous Coward · · Score: 4, Funny

    Somehow those who were purchasing their first computer were unable to buy it online.

  5. About time. by kabocox · · Score: 3, Interesting

    About time! Dell loses out on those that purchase those instore HP/Compaq machines. It shouldn't take much for Dell to actually compete in that market space, which would be good all round. Web sites + Shipping is good for some people, but for the crowd that travels to Walmart twice a week; it's just easier to buy something from a store that you are always in. Plus think of the builtin marketing of just having the machines in the stores.

  6. Oblig new slogan by Degrees · · Score: 4, Funny
    Dude! You're going to WalMart!

    --
    "The most sensible request of government we make is not, "Do something!" But "Quit it!"
  7. Sold at Wal-Mart != low quality by tepples · · Score: 5, Insightful

    I can see those who know little about computers who are looking for quality rather than bargain basement pricing steering away from Dell because they will be the new "cheap Wal-Mart computers". Any more than a PLAYSTATION 3 video game console is perceived as the "cheap Wal-Mart console"?

    Dell [...] will make even less on them because a portion of the purchase price goes to Wal-Mart. As opposed to a portion of the purchase price going to DHL (or whatever shipping company Dell uses)?
    1. Re:Sold at Wal-Mart != low quality by traindirector · · Score: 3, Insightful

      Any more than a PLAYSTATION 3 video game console is perceived as the "cheap Wal-Mart console"?

      A PlayStation 3 is a single item with a single manufacturer that doesn't vary in price or quality depending on where you get it. No matter where you buy, you get the same PS3. Do you really think the same is true with computers for someone who doesn't know much about them? I'm going to leave the burden of proof with you, as this doesn't seem worth writing an argument for.

      As opposed to a portion of the purchase price going to DHL (or whatever shipping company Dell uses)?

      It's clearly cheaper for Dell to pay their super cut-rate DHL shipping than to give Wal-Mart a portion of the profit and to ship to their DCs. If it weren't, how would Dell be saving money by only selling direct for so long?

    2. Re:Sold at Wal-Mart != low quality by Red+Flayer · · Score: 3, Interesting

      The difference being that the Walmart version is always inferior at some level.
      This is because Walmart demands a lower price every year. Sometimes this can be met via economies of scale, but not after a few years. See Snapper mowers for an example of a business owner who said no.
      --
      "Trolls they were, but filled with the evil will of their master: a fell race..." -- J.R.R. Tolkien on Olog-hai
  8. Better idea than what Gateway tried. by Shivetya · · Score: 4, Interesting

    I mean, who could have thought that having retail stores without immediate delivery was a good idea?

    I disagree with what will happen to the perception of Dell's brand, they are big enough to withstand any ills that people might associate with Wal-Mart. Hell I am many others shop at Wal-Mart simply because of price. If low price is the story their selling its not something to be ashamed of. Plus Dell could be looking long term, get them into a lower end system through Wal-Mart and upsell them at a later date.

    If Apple can go into Best Buy and survive the perception that many people of Best Buy sure Dell can handle anything from being associated with Wal-Mart

    --
    * Winners compare their achievements to their goals, losers compare theirs to that of others.
  9. SIS working with Dell by Brit_in_the_USA · · Score: 4, Informative
    This announcement seems to go hand in hand with this story: "Dell pulls SIS into cheapo PC deal " http://www.theinquirer.net/default.aspx?article=39 807

    For those who don't follow links here is an extract:

    TAIWANESE CHIPSET FIRM, SIS said it was working with big US shop Dell, to build a low-cost PC. SIS said its SiSM661GX chip set would form the heart of Dell's EC280 which is aimed at first-time PC buyers.
  10. Eh? by niceone · · Score: 4, Funny

    selling two of its Dimension desktop computers in in about 3,000 Wal-Marts

    Who the hell is going to want to buy 1/1500th of a computer?

    --
    ccalam - acoustic versions of new songs.
    1. Re: Eh? by Aqua_boy17 · · Score: 4, Funny

      Well, that's what I feel like I have now with Vista installed.

      --
      What if the Hokey Pokey really is what it's all about?
  11. Re:Super Walmart Today by corbettw · · Score: 3, Funny

    Went to a Super Walmart today. Loved it. It reminded me of Itoyokado in Japan.

    ...

    Coolness, where else but in America and in a Walmart?

    I dunno, Japan in an Itoyokado?

    --
    God invented whiskey so the Irish would not rule the world.