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The Ignominious Fall of Dell

snydeq writes "InfoWorld's Bill Snyder discusses the ignominious decline of Dell, one akin to that of Computer Associates, leaving the company forever tainted by scandal and a 'shocking breach of faith with customers.' Dell's pioneering business model and supply chain helped make desktop computing ubiquitous, affordable, and secure. But years of awful quality control and customer service have finally caught up to the company in a very public way that will do irreparable damage to the company for years to come. 'What we've learned about Dell recently doesn't qualify as an understandable mistake. Only a rotten company sells defective computers and lies about it.'"

21 of 604 comments (clear)

  1. cough by Vinegar+Joe · · Score: 5, Funny

    "Only a rotten company sells defective computers and lies about it."

    Maybe the users are holding them wrong?

    --
    "The average reporter we talk to is 27 years old......They literally know nothing." - Ben Rhodes
    1. Re:cough by Anonymous Coward · · Score: 5, Insightful

      I'm not an apple fanboy, but this isn't the same class of issue.

      Now -- if Apple had been selling the iPhone 4G for four years and ignoring the fact that a statistically large number of them were suddenly dying of a known bad issue, then intentionally shipping out 'repaired' iPhones with -more- bad parts in them, then I'd agree.

      There's a lot of evidence to suggest that Dell not only knew about the cap issues beforehand, but that they intentionally misled a lot of customers about the problem and when they did fix them, they did so with more bad boards.

    2. Re:cough by LynnwoodRooster · · Score: 5, Insightful

      Now you're assuming Apple cares about any product more than 2 years old. After all, they just cut support for first generation iPhones and iTouches, and those are just a hair over 2 years... I guess that's a better business model, though - planned obsolescence in 24 months.

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    3. Re:cough by frosty_tsm · · Score: 5, Funny

      Now you're assuming Apple cares about any product more than 2 years old. After all, they just cut support for first generation iPhones and iTouches, and those are just a hair over 2 years... I guess that's a better business model, though - planned obsolescence in 24 months.

      A hair over 2 years? The first iPhone model itself is 3 years old. Combine that with the expected life-span of a mobile phone to be 2 years (subsidized phone every 2 years), they aren't doing anything outside of the norm.

    4. Re:cough by KarmaKhameleon · · Score: 5, Funny

      "dude you're getting a dell"

      is that a threat?

    5. Re:cough by sortius_nod · · Score: 5, Insightful

      I think the big problem is that people are focusing on just Dell. I've stated in a previous post that Lenovo had the same problems, they were aware of them but did nothing to recall or even stop selling the defective machines.

      The biggest problem is that consumers don't read tech sites before purchasing, which means they are beholden to the whims of the tech company they are buying from. If they choose to deceive customers it will only become apparent when it's reported by large media organisations.

      Look at what happened with the Xbox 360. The first generation were RROD devices and it took a class action law suit with major media reporting it before Microsoft changed their tactics. I have no doubt they were well aware of the problems well before the class action suit, yet still shipped defective products. It took 2 generations of Xbox 360 boards before the problem started to be resolved. Yes, they did do a lot to mitigate brand damage, but by that stage it was too little too late. Yes, I do own a 360, and I have had a RROD.

      The biggest problem is that these companies suffer no government backlash, the whole idea that "the market will sort itself out" is total bullshit. So long as companies are not heavily scrutinised after they are caught deceiving the public means they can just claim ignorance and move on. Even with harsh consumer protection laws (like here in Australia), the idea that you can lobby your way out of it sickens me.

    6. Re:cough by Hognoxious · · Score: 5, Funny

      there is no such thing as an "iTouch"

      But there is such a thing as an "iDouche". You are one.

      --
      Confucius say, "Find worm in apple - bad. Find half a worm - worse."
  2. -shrug- by Darkness404 · · Score: 5, Insightful

    Really is there any PC maker that is 100% great and excellent? I'm sure that Dell's faults aren't any worse than HP, Toshiba's, Gateway's, or any other major maker of PCs.

    About the only way you can make sure you get decent PC hardware is to build it yourself or have enough knowledge to sub in and out parts if need be.

    --
    Taxation is legalized theft, no more, no less.
  3. Hyperbole much? by JesseL · · Score: 5, Insightful

    Does anyone here care to name a PC manufacturer with a spotless record of turning out nothing but quality, or who has always been 100% up front about dealing with legitimate manufacturing problems?

    They've all turned out crap and they've all reliably concerned themselves with their own bottom lines first and foremost. It doesn't excuse Dell, but I can't really see why they need to be singled out either.

    --
    "Prefiero morir de pie que vivir siempre arrodillado!"
    1. Re:Hyperbole much? by PopeRatzo · · Score: 5, Funny

      I built a linux firewall out of a cardboard box, spare parts, and duct tape.

      That's nothing. I built a nuclear reactor out of an old refrigerator, bits and pieces purchased at the local Home Depot and Radio Shack, and spare parts from a 1976 Toyota pickup.

      It works fine, but I have a hell of a time getting fissile material. Those nice young Russian guys say they're going to deliver as soon as my check clears. I'm going to put the waste materials in my mother-in-law's basement, which should be safe, since there's a concrete foundation. I cleaned out a corner next to the washing machine and I plan to stack the cardboard boxes there for the next 50,000 years.

      --
      You are welcome on my lawn.
  4. Re:Did I miss the boat on this one? by Kell+Bengal · · Score: 5, Informative

    Ok, actually RTFA'd and you know what? This article is shit - its premise is shit. The faulty cap story was news in 2005; people got their systems replaced. It was a blip. And you know what? 5 years later Dell is still with us. Snyder is running a beat-up here and I think it's off base.

    --
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  5. Nobody cares by Bruce+Perens · · Score: 5, Insightful
    HP sold defective PCs, IBM sold defective PCs, all have had their class action cases and they're over, and nobody cares.

    The fact is, the consumer doesn't buy reliability. The consumer buys emotional factors, and brand perception, and a good marketer can make the consumer buy any garbage whatsoever.

    This is not the end of Dell. Nobody will remember this in a few months, any more than they remember HP and "pretexting" when they buy a printer or a PC.

  6. Re:Did I miss the boat on this one? by oldhack · · Score: 5, Funny

    That's despicable. Why would you RTFA?

    --
    Fuck systemd. Fuck Redhat. Fuck Soylent, too. Wait, scratch the last one.
  7. This is spot on... by citking · · Score: 5, Informative

    I work in higher ed in the state of Wisconsin. We, of course, have a purchasing contract (a mandatory one no less). Because of this, I've been working with Dell (ordering PCs and doing warranty replacements) for a long time now.

    In the past, even just 3 years ago, Dell would bend over backwards for us. We got waived on the fees and got waived through the "exams" for warranty parts replacement certification. We could also could get spare parts on hand for PCs. Lastly, we got huge discounts for the UW System and for personal purchasing. Now, however, our sales rep is forcing us to take these stupid, 2 hour exams for replacing parts. We are, of course, overworked and understaffed and I have no time in my week to sit down and "learn" how to replace RAM or swap a power supply. Yet Dell will not budge. When I questioned our sales rep on this he became irate and downright pissy with me.

    But, that point is moot really when one looks at the atrocity that is the DOSD (Dell Online Self Dispatch) that replaced the Warranty Parts Direct site. Before my certs expired I needed to get a new DVD R/W drive. I had to scroll through lists and lists of parts, many of which were printer parts, server parts, plastic bezel pieces, etc...things that had nothing to do with the service tag of a standard desktop system.

    Dell has hit bottom. Their customer service is shit, their tech support is horrible, and the issues with the bad caps was pretty much the last straw (it's OK to have bad components; the bad part is how they tried to cover it up). I'm done with Dell. I won't recommend them to anyone now.

    --
    "This food is problematic."
  8. My company builds stuff in China by Trip6 · · Score: 5, Interesting

    Anyone who outsources manufacturing of any kind has faced this problem. Component suppliers provide defective parts to factories, and when the first parts that contain a defect not seen before arrive, incoming QC hasn't seen the defect yet and so might not test for it. The parts are then used, and if the defect allows the product to pass inspections and burn in, you now have your supply chain infected with product containing the bad part. The consequences of the bad part range from outright consumer danger (e.g. exploding batteries), to shortened product life resulting in expensive warranty repairs and a damaged brand reputation, to very little impact resulting in just a few consumers experiencing annoying problems.

    Once you learn of the bad part and the consequences, you're like the CDC (center for disease control). You have to find out how bad the outbreak is, what the return rate is, how much of the supply chain is infected, what the consequences of the failure are, and then decide what should be done about it.

    If the failure rate is below, say, 10% and the consequences non-life-threatening, you will likely do nothing and deal with it in the repair channels, and make a running change to your incoming QC processes and manufacturing lines. If there is extreme personal risk you might have to do a recall, and you probably have to suspend your entire supply chain until the root cause is found and everything from raw materials to subassemblies to product in transit to store inventories to consumer's products is fixed.

    In this case, Michael Dell was more than likely in the CDC meeting, and data was probably presented that pointed to the fact that a recall wasn't necessary. However, it looks worse than that, and Dell is being painted as a greedy tyrant who shipped bad parts knowing full well he did so.

    I guarantee this is NOT the whole story, and there was some serious gray area involved at Dell as to what to do about this issue. More than likely, this was a calculated risk that the problem would not turn out as big as it is.

    --
    I hate being bipolar; it's awesome!
  9. Oh My... by Charliemopps · · Score: 5, Insightful

    A whole new generation gets to learn how business works. A company starts and is nothing, why should people buy from it? So the company focuses on quality, low prices and customer satisfaction. People like the company so much they swarm to it. Over the years the company grows larger and larger. Eventually they have capped out their market share, they can grow no more. This is a problem in our growth driven society. We believe that any company that is not growing is failing. So the owners of the company have to grow in other ways, they have to give less to the market they already have... and try to get the market to pay more despite getting less. First the sacrifice from within... departments are cut, benefits are cut, employees are given quotas that grow daily until they are doing so much work they can barely focus on any one thing at a time. Eventually the company realizes it can't cut anymore from within and still function, so it starts looking for cheaper suppliers. Bonuses are given on a yearly basis so an executive can come it, buy tons of faulty components, get his bonus and be gone before the shit hits the fan. Eventually the company is so distrusted by the public they are relegated to a brand name sticker wall-mart sticks on junk it bought from some 3rd party. But the big wigs at the company walk away with their wallets over flowing, open a new start up... rinse and repeat. It's the same with nearly every American business.

  10. Re:Even then you don't know by Doctor_Jest · · Score: 5, Insightful
    The court documents disagree with your last statement regarding Dell. The problem here isn't that there were defective computers, it was the Dell sold them knowing they were defective, then cycling around to blaming the customer when they did break. And this isn't about Mini10's or anything like that.. this is about Optiplexes... which is a staple of small to medium-sized businesses. I am not angry that Dell sold defective computers (that is the capacitor maker's fault really.) I am angry at Dell because they lied about it and blamed users. That is dirty pool in anyone's book. This is about the capacitors failing, but that is just the half of it.

    From the article linked to this one:

    The documents were connected to a lawsuit filed by Web hosting service provider Advanced Internet Technologies (AIT) against Dell in the U.S. District Court for the Eastern District of North Carolina on Nov. 1, 2007. AIT sought $75,000 and punitive damages from Dell for breach of contract, fraud and deceptive business practices.

    So they WERE found guilty of fraud and deceptive business practices on a small scale with AIT. And so it balloons into a shitstorm even Michael Dell can't sweep under the rug. This is about far more than lemons....

    --
    It's the Stay-Puft Marshmallow Man.
  11. Buy Dell Small/Medium Business PCs by lalena · · Score: 5, Informative

    People on this site should know that if you buy from Dell, you get it from their Small / Medium Business site.
    US tech support & they come to your house to fix the computer within a day or two.
    The bonus is that I think the computers are cheaper. If you try to get a powerful PC from Dell, their home models usually force an overpriced under powered video card on you. Good video cards are very expensive from Dell. The Business site allows more choices. It lets you get a good PC with no video card. If you don't need one, use on-board video. If you do need one, get it from newegg.
    Note: I do build and overclock PCs, but sometimes if you need something simple it is hard to beat Dell's < $300 computers. I also go with them for the very small form factor PCs and sometimes check out their Refurb Site for Previously Ordered New (returned - not refurb) PCs to see if they have exactly what I am looking for.

  12. Re:Even then you don't know by JDeane · · Score: 5, Informative

    I worked as Dell telephone tech support, I can honestly say they DO know about the issues. Nice big red screen pops up when you call them that says "Do not read this to the customer" it contains a full description of the issue your having 99% of the time. (The E6400's where funny as hell.... and no your not crazy and yes Dell knows about the issue.) Oh did I mention this screen pops up right after we ask "Can I have your service tag number".

  13. Re:Ok, name another... by LynnwoodRooster · · Score: 5, Insightful

    Now you're assuming Apple cares about any product more than 2 years old.

    What other cell platforms are getting significant updates after two years?

    The difference is that Apple just posted 65 critical patches to iOS, half of which allow arbitrary code execution. So you're not getting those now-published and officially acknowledged holes.

    And Apple holds your actions illegal if you attempt to fix them yourself.

    So it's not just the open publishing of security patches that won't be fixed for old phones, but legally prohibiting the owner from fixing those patches on their own.

    Yeah, they won't support it, and legally restrict you from supporting yourself!

    --
    Browsing at +1 - no ACs, I ignore their posts. So refreshing!
  14. Re:Wait, what? by L4t3r4lu5 · · Score: 5, Funny

    That'll be your eyesight going, grandpa.

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