The Mac Observer

Skip navigational links

You're viewing an article in TMO's historic archive vault. Here, we've preserved the comments and how the site looked along with the article. Use this link to view the article on our current site:
Dell's Direct Sales Approach Wilting

Dell's Direct Sales Approach Wilting

by , 12:10 PM EDT, April 30th, 2007

The Dell direct sales model has been a big success at Dell. Lately, however, the systems is showing signs of weakness brought on by new customer buying patterns, according to the New York Times.

Dell, under pressure from HP and Apple, has found that its traditional direct sales model isn't working as well as it once did. As a result, Michael Dell resumed the management of the company in January and is looking at news ways of selling Dell's computers. "The direct model has been a revolution, but it is not a religion," Mr. Dell told his employees last week.

Analyst Samir Bhavnani has believed that the dynamics of the market have been changing for some time. Consumers shifted from desktop systems to notebooks, and it hasn't been as easy for Dell to configure notebooks on the fly -- which has incurred costs. "In addition, consumers were showing a preference for touching and feeling a notebook PC before buying it," Damon Darlin reported.

As a result, Dell's new management team has been putting into place a new manufacturing and distribution system and trying to create a sense of urgency with the employees. "This is a defining moment in our history and in our relationships with our customers," Mr. Dell wrote.

Apple's combination of a set of retail stores where customers can touch and feel new computer and the on-line store has certainly been a hit with their customers. Even when customers prefer to buy a Dell PC, they're likely to be influenced by the appeal and potential of their local Apple store offerings.

Previously, Dell has experimented in Dallas with a mall presence, but one could still not walk out of the store with a computer -- only order one based on the display models. Time will tell if Dell can succeed with a new retail approach selling commodity PCs as Apple has done with uniquely designed, valued and marketed Macs.

Recent Headlines - Updated July 30th

Mon,12:40 PM
Three Ways to Protect your Apple Watch (and One Way Not To)
Mon,10:42 PM
Google Brings Higher Resolution Satellite Imagery to Google Earth and Maps
9:10 PM
Google Bloks Will Offer Kids Hands-On, Collaborative Programming Concepts
8:44 PM
PRE-SALE: The Complete iOS 10 Developer Course at $29
5:15 PM
Game Foul: Ford Dealership Steals Firewatch Art
5:04 PM
TMO Background Mode: Interview With Symply Co-founder and President Alex Grossman
3:20 PM
iPhone 7 Sans Headphone Jack: The Debate Continues
1:58 PM
TMO Daily Observations 2016-06-27: AAPL, Brexit, Google Blocks
11:58 AM
Google Ready to Try Apple’s Tactics with New Smartphone
9:33 AM
Apple gets its Rainbow on for SF Pride Parade
Sun,12:18 PM
MGG 611: Troubleshoot & Resolve Your Mac & Apple Issues
Fri,7:00 PM
Apple Kills the Thunderbolt Display - Will the Mac Pro Be Next?
  • __________
  • Buy Stuff, Support TMO!
  • Podcast: Mac Geek Gab
  • Podcast: Apple Weekly Report
  • TMO on Twitter!