Dell Still Having Problems As Shares Plummet
Once upon a time Dell was the darling of the computer industry. It was #1 in sales and its technical support was rated #1 as well. But times changed and slowly the company lost market share to HP and others. When its technical support went to India, consumer complaints were loud and clear. So several years ago Michael Dell took back over the company and it looked like Dell would recover. But unfortunately it appears the company is still struggling, trying to stop its slide in ranking.
One news article states that:
Investors punished computer maker Dell Inc. last Friday, sending its shares down almost 10 percent, as the company’s third-quarter earnings, revenues, and results came in below expectations.
The world’s No. 3 computer maker also lost market share to its rivals, a disappointing sign to analysts that it may be losing ground to its competitors as the computer and IT market shows signs of a rebound. The company lost market share to Hewlett-Packard Co., Acer Inc., and Apple Inc.
Consumers have resumed buying computers over the last few months, spurred by back-to-school sales, a recovering economy, and the upcoming holiday shopping season. But consumers have largely avoided Dell, instead snapping up HP laptops, Acer netbooks, and Apple computers—a trend that some analysts attribute to Dell’s staid and sometimes-uninspiring products.
The pricing of Dell systems appears to be competitive with other companies, so price doesn’t seem to be an issue. I believe that the reason for Dell’s decline is in consumer confidence. Dell is kind of like the American car companies that may have lost sight of what makes any consumer loyal to a brand. Beside price is the quality of the product and the technical support one receives.
In an age where most everyone is on the Internet, rumors, complaints and consumer reviews are flashed around the world in an instant. So when consumers complained about Dell, the world listened and may still be listening.
What do you think?
Comments welcome.
7 Comments
Buffet
November 23rd, 2009
at 4:55pm
Their big mistake was, they shoulda kept the weed smokin’ kid, Steven (cool name). That’s when they were number one. Think he’d come back if they begged him and offered lotsa dough? Want a great computer? How about, “Yer gettin a new machine, custom built and tailor made to your specifications, with the components and OS you select, completely devoid of bloatware and ‘trial’ crappola, made by the friendly geeks at yer local mom and pop comp shop, for about a third of what you’d pay at “Worst Buy” for a ‘Brand’ name one….Dude!!!”
Ron Schenone
November 23rd, 2009
at 5:05pm
Heh Buffet – LOL
Thanks for the chuckle.
Have a great Turkey day.
Buffet
November 24th, 2009
at 5:31am
Happy Thanksgiving to and yours sir. Might I take a moment to add – As someone who neither watches “the news” on television, nor reads the biased, bullshit, birdcage liners known as newspapers, I’ve always been somewhat lacking in my knowledge of “current events” at social gatherings (though a veritable fountain of useless trivia). No more! Thanks to you, Leftystrat, DogReader, The Oracle and the gang, I not only know more often what everyone’s talking about, I actually have something interesting and relevant to add here and there. I’m sure I speak for many. Thanks!
Don Naphen
November 24th, 2009
at 2:57pm
Hi Ron; well I’ve only purchased one Dell and it was a lappy for my son. That was a few years ago. From the get-go it was a huge disappointment, compounded by the “Indian Tech Support” that didn’t know a mouse from a keyboard without a script in front of them. That first experience was also my last with them. Don’t know if the company has made any gains, but as you pointed out, once customers lose faith in a company they seldom return. Competition is just too stiff these days. As my boss always says: “You’re only as good as your last attaboy”. Yeah, 5000 attaboys can be wiped out with one oh sh** !!
Ron Schenone
November 24th, 2009
at 3:02pm
Hi Don,
Thanks for sharing your experience with us. It is appreciated. Once again, have a great holiday.
Regards, Ron
Gary Bing
November 24th, 2009
at 3:45pm
Jason Long is driving sales and people are taking the plunge and biting into an apple and finding no worm despite the pithy ads. Dell Dude could do the same thing he used to driving up sales. But I guess that would be too easy. Like everyone wants an overpriced Mac. Please.
Gary Bing
November 24th, 2009
at 4:11pm
P.S Priceline.com could not afford to pay William Shatner for his ads. They paid him in stock. He made millions on that one. Dell Dude could do the same.