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 TMO Headlines - Updated February 27th

Mon, 12:06 PM
FRESHeBUDS Air Bluetooth 4.1 Earbuds
Mon, 11:34 AM
New Drone Footage Shows Nearly Complete Apple Park
Mon, 11:10 AM
AT&T Revamps Unlimited Data Plans with Tethering, Lower Prices
Sun, 10:47 AM
How do I choose a UPS? – Mac Geek Gab 646
Sun, 1:15 AM
Get Free Bitcoins from 11 Faucets That (Still) Pay
Sat, 9:42 PM
How to Turn Siri into a Metronome (Video)
Fri, 10:17 PM
Stanford's 'Developing iOS 10 Apps with Swift' free on iTunes U
Fri, 8:20 PM
iPhone Screen Repairs By Third Parties Now Get Some Warranty Coverage
Fri, 7:56 PM
Amazon Goes with First Amendment to Protect Alexa Recordings
Fri, 6:28 PM
An App that Automatically Notifies People of Your Trip Progress
Fri, 5:51 PM
Apple and Silicon Valley Struggle to Navigate Trump's Waters
Fri, 5:43 PM
The Thinking Behind a Female Voice for Siri
  • __________
  • Buy Stuff, Support TMO!
  • Podcast: Mac Geek Gab
  • Podcast: Apple Weekly Report
  • TMO on Twitter!