Another point is that iPods - at least the current gen - work on both Macs and PCs. Dell DJ's only work with PCs. Granted, the vast majority of people out there are PC users (and an even greater percentage of those who would actually consider such an offer are going to be PC people as opposed to Mac people)... but still. You get mp3 and WMA on windows only with no iTunes... or you get mp3, aac, aiff (etc) on Mac or windows and can still use iTunes.

Easy call - keep the white and chrome beauty!

I posted this at MacNN

Dell has gone on record essentially saying that innovation is NOT the way to go in the computer market, and price cutting IS! (this is what made Dell so successful). My contention has always been that a significant number of people would rather have quality, integration, good engineering (witness sales of Honda, Toyotas, etc) at the expense (no pun intended) of lower prices. I believe that the computer market, dominated by MS and the likes of Dell and plenty of FUD for so long, did not allow this to happen- until now (maybe).

The portable music market has essentially been untapped, until now. The iPod leads the market in every way, DESPITE being more expensive than the others. However, it's more stylish, functional (interface), and integrated (iTunes etc) than the other offerings out there. People love this product, which is why it's such a big success. Dell obviously hasn't sold squat as far as his "DJ's" are concerned. So he is implementing the age old Dell philosophy of price cutting in order to sell more and hurt the competition. What's more is he's aiming his promotion squarely at the iPod.

It will be VERY interesting to see the results of this study- less style, less integration, lower cost, lower quality vs. stylish, integrated, innovative. I hope the iPod wins- that will set a precedent for the rest of the industry and hopefully be a sign of things to come.

Great post, Guest. It will indeed be interesting to see how it works out.

I would add, however, that there is room for both chepness (pronounced as it it written) and quality, at least in the computer market. Note Apple's increasing Mac unit sales, even though the company isn't keeping up with the market as a whole.

Again, it will definitely be interesting to see how it all works out.

Quote

Bryan wrote:
Note Apple's increasing Mac unit sales, even though the company isn't keeping up with the market as a whole.

Bryan, I believe Apple is actually gaining ground in its market: PCs costing $1,000 or more. It's just that the market for cheap PCs is growing more quickly, thus reducing the company's overall share though unit sales continue to climb.

I'd rather have Apple's share of the profitable end of the business than Gateway/eMachine's share of the discount PC market.

It's nice that Dell is working to clean up the market for used iPods. That means demand for new ones will only grown more quickly...

Dull must have a real dud with the DJ. Basically cutting the price by more than half within 6 months of releasing the DJ is a pretty good indication that they have something that isn't selling. They are stuck with it and when their inventory is cleared (if anyone is dumb enough to take less than the e-bay price) I think they will either get out of that business or announce a "next generation" DJ. Bet that Steve J sent Mike D and email saying "LMAO".

Basically cutting the price by more than half within 6 months of releasing the DJ is a pretty good indication that they have something that isn't selling.

===

Not at all. I'm pretty sure that Dell doesn't expect many people to take them up on this offer. It's just about publicity, nothing more.

So, if they don't really expect people to take advantage of the deal, it's not really "price-cutting" now is it?

is by selling the used iPods for $200 + on eBay.

I would consider Dell's offer if they give me a DellDJ for six month to try, plus $100 and I get to keep my iPod. And if I don't like the Dell player, I can return it and keep the cash.

finally an ebay market for a cracked/car run over 1st generation ipod - the only ipod that is worth a working Dell - it's still like trading a Bentley for a Kia.

After you get the $100 from Dell, then sell the Dell on ebay towards a new ipod.

Michael Dell is an ass.

There.
I said it.

I feel much better now.

anyone who takes dell up on this offer with anything other than a 5 gig, first generation ipod ("preschool ipod" i like to call it, or an ipod that is complete junk is throwing their money away. sell it on ebay.