Dell woes

Is there any reason why Dell can’t see the reason they are swimming in murky waters right now? Apple is successfully pushing the iPhone, a product that shoves ~30% profit margin back into the company. What is Dell pushing? A setup like this that sells for less than the iPhone. Where’s the profit in that?

The problem with Dell is that the company is having a hell of a time conveying value to their customers. So far, they have been able to convince the value of buying Dell because of its low price. Unfortunately, efficiency no longer is an advantage that only Dell enjoys. Hear me out Mikey, spend some money and steal some of Apple’s marketing folks. You can thank me later.

Update: OK, so it wasn’t Mike who responded, but Richard did. I have been very impressed recently with Dell’s service at both corporate and consumer ends. Looks like Mike’s getting Dell’s groove back. So thanks for hearing me out, Richard!

In other related news: Rollins gets nice wad of cash for stepping down. I wonder how many $399 complete systems it’ll take to make that up! 🙂

Update 2: Would this be part of the upcoming new changes that we can expect from Dell?  Dell Acquires Zing.


2 thoughts on “Dell woes

  1. Thanks philip….we have alot of change in the works and more to come….including overhauling things like the website and more. Stay tuned. By the way, you link takes me to page that tells me you used the wrong e-valuer code. anxious to know more about what you linked too?

  2. Hi Richard,

    Looks like the deal has already expired. It was a complete system under Dell small biz for $399. Great value for the customers but I can’t imagine it being that great for the company’s bottom line. I’ve personally been a fan of Dell’s business for as long as I can remember (staring at 2 Dell monitors right now!) and want to see Dell succeed. Having been a previous investor it’s good to see Dell making an effort to turn things around. Found some traces of your work online –Looks like your efforts are really paying off!

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