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:
C|Net Details Dell's Blunders

C|Net Details Dell's Blunders

by , 2:00 PM EDT, April 3rd, 2008

Dell is laying off thousands of employees and plans to close a factory in Texas. The reason may be a series of strategic blunders combined with smart maneuvers by Hewlett-Packard, according to Don Reisinger in his C|Net blog.

At one time, Dell was king of the PC market, pummeling all competitors. Now, Hewlett-Packard has surpassed Dell in market share and is growing at a much faster rate.

It may have started when Dell had to restate its financials after some falsified accounting. However, the problems have recently been due to the fickle way customers prefer to buy their computers, Mr. Reisinger explained. There was a time when buying a PC in CompuUSA was just no longer cool, and commodity PCs could be purchased for less, with no middle man, direct from Dell. In time, however, customers seem to have learned that when a PC is cheap enough, the value added of touching a testing a PC (or a Mac) creates a better buying experience. Apple retails stores proved that.

By the time Dell realized that and tried to return to retail channels, it was too late. Hewlett Packard, who may have learned something from Apple, was already firmly entrenched at Best Buy.

The grand experiment with commodity parts and little brand distinction may have caught up with Dell, and as a result, Mr. Reisinger pointed out: "Sadly, there's not much more Dell can do. In an environment where margins are extremely low and companies are forced to find innovative ways to entice customers, Dell is fighting an uphill battle. And although its revenue has grown, its growth has slowed to a crawl and things may get worse if they ever get better."

Recent TMO Headlines - Updated May 24th

Wed, 9:00 AM
Live Home 3D Pro for Mac: $24.99
Wed, 8:52 AM
macOS: Setting Your Default Printer
Tue, 11:13 PM
Apple Elevates Inclusion and Diversity to Rank of Vice President
Tue, 8:30 PM
How to Use Instagram Archive to Hide Old Photos
Tue, 6:10 PM
How to Use New 1Password Travel Mode to Protect Your Data
Tue, 6:05 PM
There's a $399 3D Printer on Kickstarter
Tue, 4:59 PM
No PC Maker Can 'Go After' Apple MacBooks with Good Design
Tue, 4:27 PM
Samsung Galaxy S8 Iris Scanner Already Hacked
Tue, 3:00 PM
iOS 10: Disabling Slack Indexing Might Improve Spotlight Search - Here's How to Do It
Tue, 2:11 PM
Soverin Secure Email 1-Year Subscription: $10
Tue, 1:46 PM
IKEA Says Hello to HomeKit, Apple's Diversity Boss, Huawei Targets the MacBook - TMO Daily Observations 2017-05-23
Tue, 10:22 AM
IKEA is Making HomeKit Smart Lights Affordable for Everyone
  • __________
  • Buy Stuff, Support TMO!
  • Podcast: Mac Geek Gab
  • Podcast: Apple Weekly Report
  • TMO on Twitter!