Is it just me or is Dell having trouble focusing? I mean isn't this crazy?
First they buy EqualLogic for an ungodly sum of money (great move for them I'm sure). So, after this big purchase, let's do the next logical thing, let's start trying to create a line of MP3 players? Uh, what? I suppose now if you buy two MP3 players and link them together they'll join together as a RAID 1 (or zero) stripped set of MP3 Players. Perhaps they'll sell a nice little multi-port dock to go with it.
Apple has iTunes to drive sales of the iPod and of course, it now is pervasive and involved in the entire line of products Apple makes. Dell has, well, they have, wait...I'm thinking...nothing! Yeah, nothing. Could they have picked a harder market to break into? I think if you are the brunt of a bunch of jokes about a product announcement, that's probably a good indication it is a bad idea. If this were April 1st, I'd have thought it was an April Fool's joke.
Owning stock in Dell has got to be the roller coaster ride of the decade. Good luck with that Michael!
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This is dell flailing around like an wounded grouper in shark-infested waters.
It took Dell generating 16 billion in revenue to generate 784 million in profit. Next quarter it will be 17 billion for 650 million. Next 19 billion for 500 million and so on.
They have absolutely no idea what to do now that their make-it-cheap-as-possible business model is running out of gas.
The funny thing is, after posting this, I had to think, what is their focus? Obviously, it is Windows based computing hardware but really, is that a focus? The category and the types of products are so broad as to be unfocusable. (I know, not a word, but it should be.)
That's like saying Wal-Mart is focused on selling products. Of course, they are "focused" on retail sales. It is still too broad though.
So with Dell losing their profit $$ as a % of sales quarter, they really do need to look around. I guess MP3 players are probably one of many things we'll see them do out of desperation. I'm sure they'll take a shot gun approach.
Oddly enough, with % margin on sales down so much, they still insist on selling for next to nothing as though they were the next NewEgg or CDW. I've purchased supplies and batteries and other accessories (including digital cameras) for well below others costs. They are whoring out product like you wouldn't believe if you can catch them at the right time. Talk about bleeding profit! I sure hope that isn't their strategy to conquer the world.
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