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?
Is DELL desperate? no, just a natural business evolution. The show is on: watch Walmart eat them alive.
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
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.
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.
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.
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.