Dell Plans to Sell PCs at Wal-Mart

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.'"

Comments

Increase sales volume, destroy the brand

[traindirector]

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.

Re:Increase sales volume, destroy the brand

[SEAL]

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.

But will they run Linux?

[solevita]

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

Finally they figured it out

[Anonymous Coward]

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

Oblig new slogan

[Degrees]

Dude! You're going to WalMart!

Sold at Wal-Mart != low quality

[tepples]

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)?

Better idea than what Gateway tried.

[Shivetya]

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

SIS working with Dell

[Brit_in_the_USA]

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.

Eh?

[niceone]

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?

Re: Eh?

[Aqua_boy17]

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