DELL is desperate?

Discussion in 'Wall St. News' started by a529612, May 24, 2007.

  1. Dell just reversed their original business plan. Phone/Internet orders were their edge, as they could bypass 3rd party retailer/middleman and therefore cut costs.

    What next, Amazon.com bookstores?
     
    #11     May 24, 2007

  2. AmazonMart. But with more books on the shelf for sale...:p
     
    #12     May 24, 2007
  3. Finally a Dell PC worth waiting for... :D
     
    #13     May 24, 2007
  4. Tums

    Tums

    Is DELL desperate?

    no, just a natural business evolution.


    The show is on: watch Walmart eat them alive.
     
    #14     May 24, 2007
  5. gwb-trading

    gwb-trading

    I think this may be a good move for Dell. The key problem with selling retail is the the margins that you must provide for the retailer eats into your already thin profit margins as an electronics manufacturer. The only successful alliance for Dell would be one with a retailer that could:
    a) move volume
    b) required only thin margins on the re-sale.

    Walmart meets both of these expectations for Dell, along with the condition that you do not want these sales cutting into your business or high-end sales via the web. Walmart will be selling a couple of low end Dell models which they can move in volume with razor thin margins. If Dell had teamed with a standard electronics Brick & Mortar store then the store would expect the entire Dell consumer computer product line and a lot higher margins on each sale (ignoring that most of these chains do not have the reach and scale of Walmart).

    This alliance may work out very well for Dell.

    - Greg
     
    #15     May 24, 2007
  6. Hopefully the next move will be to offer computers with Linux or Windows OS. Setting up Linux can be a hassle and I think Linux would be popular.
     
    #16     May 25, 2007
  7. I whole heartly agree with you. When I stick my computer in the shelf tucked away so I can't hear and see it, I like to rest in the comfort that it looks good.
     
    #17     May 25, 2007
  8. some folks like to bang on the case like a drum, in time to the mp3's that are playing.

    looks like we have a few here.
     
    #18     May 27, 2007
  9. If you ask me, Dell computers are going to look pathetic sitting on WalMart shelves.
     
    #19     May 27, 2007
  10. GaryN

    GaryN

    They should be able to sell more of the cheaper computers because you wont have to pay the $100 shipping charge. The better models will probably still be sold mostly online.
     
    #20     May 27, 2007