Banking

Michael Dell continues to turn his namesake around

Dell Computers has added another retail partner to a stable that includes Wal-Mart and Staples. After Christmas, Best Buy stores will begin selling Dell desktop and laptop computers at over 900 retail locations. The move is the latest by Michael Dell after retaking the reins of the company he founded. In fact, one analyst likened this move to a religious conversion.

Dell Computers has added another retail partner to a stable that includes Wal-Mart and Staples. After Christmas, Best Buy stores will begin selling Dell desktop and laptop computers at over 900 retail locations. The move is the latest by Michael Dell after retaking the reins of the company he founded. In fact, one analyst likened this move to a religious conversion.

"That's like going from being committed to one religion to being pagan," said Richard Shim, PC industry analyst at IDC. "They needed distribution, particularly to consumer retail, and Best Buy, that's center stage."

Dell: Not the PC company you used to know (News.com)

There are also rumblings that the computer giant will be focused on acquiring new business units, and one analyst suggested Motorola's handheld phone unit, which could give Dell more ways to compete with Apple. Dell also announced that their board approved a $10 billion stock buyback, reflecting Dell's opinion that the stock will be appreciating over the long term. Many industry analysts feel the same way, even after Dell shares suffered a 14% drop last week as a result of their missing analyst's profit projections.

Dell could eye Motorola unit, Attachmate, others to boost growth, sources say (Financial Times)

Dell: Turnaround Plan Not About Quick Fixes (ChannelWeb)

Dell shares drop in premarket, but analysts confident in Dell's turnaround plans (TradingMarkets.com)

Dell has been on top of the industry for quite some time now and circumstances had started to make it appear that Dell would begin losing its throne like so many other PC makers in the past, the most prominent being Compaq. However, Michael Dell's aggressive, outside-the-box thinking seems to have turned the company around, even though the turnaround is still a work in progress.

Personally, I like Dell computers and trust the manufacturer to build a solid computer and then support it well. My entire work environment is Dell, with the exception of a few special purpose machines and appliances, and things have been remarkably stable, particularly on the server side. Do you think Dell's fortunes are turning around?

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20 comments
akshaykrsingh
akshaykrsingh

i do have High Regards to Michael Dell but then i feel that he will have to face bit of a tougher compition to be on the Charts... Time is changing... and so are we... Akshay Singh www.HugeH.com

cnaw
cnaw

Yes, Dell will survive. I work on all PCs. for small business and consumers. I find that Dell makes a consistently good system, and thier support is pretty good, (though most of their reps don't speak the best English!) Dell offers a pretty good line of Servers and workstations, though I don't much care for their printers. As a businessman, Michael Dell is pretty sharp, so I think he'll keep them going. I fhe follows some of Apple's market moves, he'll do ok.

BBPellet
BBPellet

Does 4 laptops in 3 months that have had their power supplies actually MELT the case constitute a good system! OR How about 5 desktops that have had their motherboards fail, 4 were RMA's of the first one! And last but not least how about 2 servers that started on fire at the same time on the same day....the day they were installed by a DELL on site technician! This all happend to my company, this was last year....we have since switched over to HP/Compaq, but we are still fighting with DELL to get a refund on all of this. Personally I think they are circling the drain....I give them 2 years and they will be either go south or be gobbled up by someone else.!

BBPellet
BBPellet

NOPE....their customersupport stinks! Their servers are lousey. Laptop go nuclear after 12 months (which is the warranty with the unit. Desktops have overheat issues...the list goes on and on....and now with their recent purchse of Equilogic SAN device, which WERE a great product till Dell got a hold of it...now you wait 7 days for support to get back to you! Ok have I made my point...DUDE YOUR DELL SUCKS!

karl
karl

When we bought new workstations and servers in 2005, I selected Dell over HP and have been very happy. I have had none of the problems you suggest. All servers & workstations have been flawless. The one time I needed to call tech support I got outstanding service, a knowledgable engineer and very fast resolution of the problem. If I was doing the same project over, I would easily select Dell again.

juan
juan

THEIR SERVERS AND OPTIPLEX PC, ARE GOOD PRODUCTS, CANNOT SAY THE SAME FOR THEIR PRINTERS, WHICH ARE MADE BY LEXMARK, THEIR SWITCHES RESET OR HANG UP WHEN OVERLOADED.

brucer
brucer

We have a radio station as one of our clients and all the machines - on air servers working 24/7 and workstations are all Dell and have been for the last seven years - we have never had any problems with the product and will select them again.

tom_housden2k8
tom_housden2k8

They cost too much to upgrade too, and they try to sell you stuff you don't need!

renaldodesilva
renaldodesilva

I don't totally agree with the 2 previous comments, I have noticed a significant decrease in the build quality of their products and they aren?t innovating the way they used to. They have taken too long to enter the tablet pc market. But bang for buck they are still one of the best in the business especially with corporate discounts and their technical support is the best where I?m located in Trinidad and Tobago. I wish their customer service was half as good, getting quotations, placing an order and having the order delivered is a pain. I hope they do turn things around.

BBPellet
BBPellet

We have dropped dell completely as a vendor, no service at all. Shoddy products at least as far as business computing goes. I liken them to the used car dealers.....sell ya a lemon 99.999% of the time!

Andy Moon
Andy Moon

With all of the moves that Michael Dell has made, from the stock buyback to the various new partnerships with retail locations, do you think that Dell is making the right moves to turn their fortunes around?

donaldcoe
donaldcoe

Since the 1990 ?s I have witnessed many PC manufacturers rise and fall, and some to not be heard of again. Dell will be no different if it forgets the Retail Rule. (see last paragraph) 1st They start with a top of the line product to catch that customer?s EYE and feed you with a little proprietary PIE (component upgrades that suggest only items approved by their company (Jelly-Jam) will work, when technicians know better. So the cost is a little higher for the average product. 2nd They stuff their boxes (PC frames) with bulk purchased cheap ? No Frills Intel locked down BIOS mainboards with onboard video, designed around their PC proprietary frames, proprietary power supplies, and purchased small capacity hard drives and pre-installed Microsoft OS on a proprietary System Restore Resource CD designed completely around the proprietary PIE as a Whole. 3rd Sale it as a package deal with a monitor, cheaper than CHEAP printer and get you on replacement cartridges. Give you 1 or 2 year warranty cause by then there will be SOMETHING TOTALLY NEW on the market that will not allow you NO MIGRATION to it, from your old. Thus another landfill donation. Now listening to this article someone might think I am talking about only DELL, you be wrong cause the list includes: Packard Bell, Compaq, IBM, Gateway, plus Dell. In the retail business you have to do these things to survive long enough to come full circle to kissing your BOTTOM line or sell to someone?s government or someone that will buy a boat load of plain Jane?s. All non survivors (PC manufacturers) lose cause they stopped feeding the needs of the small GUY or GAL. Retail Rule: If you know you cut corners make sure you show quality of style in the corners you cut and that you put the sweet taste of satisfaction in your consumers mouths. Yes Dell will survive

SUPPORT
SUPPORT

Dell computers are by far the worst computers I've worked with. They overheat all the time, the Tech support is horrible, the power supply is always blinking amber, Ofcourse the blinking amber happens when it out of warrenty. Please do not forget about the Capacitor problems. The list of problems goes on for ever. If the tech support was better at least that would have been an improvement for Dell.

Forum Surfer
Forum Surfer

At the time of that capacitor mishap, I saw Dell, HP, IBM, Compaq (at a higher rate than dell) and EVERY manufacturer have issues. As a matter of fact all electronics from that time frame are a timebomb waiting to happen. The only people who didn't have trouble were top end electronic suppliers that only used solid state capacitors (like Gigabyte brand mother boards and a few high end audio/video compnents). So, yeah, everything got affected by that bad shipment of capacitors, not JUST Dell. And their corporate level help desk has always been fine, unless you call them up and act like you already know the problem and you just want a part. They have to cover their losses just like anyone else so they can't just take what you say is fact, they are naturally going to politely ask you to troubleshoot and respond accordingly. Or maybe you are right and Dels are crap...I guess that's why half of the government agenencies and big corporations buy them or lease them in bulk (and continue to do so after countless financial and corporate level expenditure reviews in both monetary figures and human man hours invested by the IT staff figures).

dschuster
dschuster

I know of NO company that doesn't have a few naysayers. That said I have to compare Dell to others not to itself. I still hold IBM Thinkpads in highest regards for durability and service and use them as my model. I am disappointed that Dell service techs want to treat me like I don't know what I'm doing. I have always said that we should be given a user code that would enable us past the basics to an upper tier. Mechanically I have had no issues with a Dell, better or worse, than HP, Sony, Toshiba, etc. I am often amazed that when you figure the changes in technology and the ability to market those, as well as incorporate them, and then repond to glitches, I'm amazed that Dell does as well as they do. Remember that Dell's logo is on many pieces of equipment not even made by them, but they still have to respond to the customer and I think they do quite well all things considered.

Forum Surfer
Forum Surfer

" I am disappointed that Dell service techs want to treat me like I don't know what I'm doing. I have always said that we should be given a user code that would enable us past the basics to an upper tier." You do get that type of service at Gold enterprise or XPS level support. For either of those you pay dearly and you may still get the occasional support rep who makes you do the basics. For the most part when I call or chat with hardware support within 10 minutes I'm off the phone with the part I requested enroute and arriving the following morning (or sooner depending on the warranty purchased). I could definitely build all these systems at work cheaper myself and have a better quality pc. That goes out the window when you buy 200 or more units at once and factor in manpower. In that respect, you have no choice but deal with companies like Dell, HP or IBM/Lenovo. They all do what they do well.

paul.kamaras
paul.kamaras

we are convinced it will - mainating the serve which at least in Eurpe is by far the best!

kcooper
kcooper

I think so. My company has been using Dell workstations and servers for 8 years. We've had no problem with tech support for those items. On the other hand, I'm not overly fond of Dell printers or networking components.

Photogenic Memory
Photogenic Memory

I look forward to the commercial. Perhaps they'll do a then versus now theme. You know?; footage of him fresh and energetic then immediately cut straight to him now. He'll be a smoked out 30ish looking fool as a janitor at a pharmaceutical company with 2 other roommates. One roommate works at a record shop and the other at a fast food joint. They have a Rottweiler named Killer upon which after giving "Killer" a hit of magic smoke; he flies over the skyscrapers of New York, New York. God, I'm soooo gonna love this movie...errrr....I mean commercial, LOL!

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