“In recent months, Dell has been testing a digital music player that could go on sale as early as September, said several Dell officials. Launching the player — along with an online download service and related software — would be part of a strategy that Dell Chief Executive Michael Dell hopes will move the company into a broader range of consumer markets than it has served before,” Juston Scheck reports for The Wall Street Journal..
“When Dell stopped making music players in 2006, its U.S. market share remained below 3%, estimated analyst Rick Doherty of Envisioneering Group, who follows the MP3 player market,” Scheck reports. “This time… instead of simply selling a piece of hardware tied to someone else’s music service, as it did in 2003, Dell is working on software for a range of portable PCs that will let users download and organize music and movies from various online sources.”
“The music player Dell has been testing — the product’s name couldn’t be learned — features a small navigation screen and basic button controls to scroll through music play lists. It would connect to online music services via a Wi-Fi Internet connection, and Dell executives said they would likely price the model currently being tested at less than $100,” Scheck reports.
“Rob Enderle, an industry analyst whom Dell hired to consult on the new entertainment strategy, said he is still discussing with Dell whether profits would come mainly from the subscription service or from devices tied to it,” Scheck reports.
“Apple had 71% of the U.S. MP3 player market in the first quarter of 2008, according to industry analyst NPD Group. Apple’s closest rival was SanDisk Corp., with 11%. Microsoft, which introduced its Zune music player in 2006, had just 4% of the market,” Scheck reports.
“The new plan could strengthen Dell’s consumer brand, said Mr. Enderle,” Scheck reports. “Dell is tapping ex-Apple expertise to make its foray. Its device is based on software developed at Zing, a company Dell acquired last year and which is headed by an Apple veteran. Mr. Tatelman said Zing software can be used to retrieve and organize online music, movies and photos, and will come pre-installed on a series of new Dell notebook computers and other devices.”
Full article here.
[Thanks to MacDailyNews Reader “Macaday” for the heads up.]
We thought we’d seen pretty much everything. We were wrong. The “Wow” really started as soon as that WSJ headline popped up this morning. When it was first shouted out, ringing through the cavernous halls of the palatial MDN headquarters, it was greeted with a chorus of yeah-rights and then quickly followed by shocked silence as the URL loaded up in Safari on our pristine MacBook Pro screens. Wow.
So, not only is Dell is planning yet another DOA MP3 player they’ve hired Rob Enderle as a consultant. Rob Enderle, quote whore for hire. Of the Enderle Group, which consists solely of Rob and his wife, Mary. And, you thought the Zune was late to market? Dell’s nuts.
Dell shareholders: Be afraid, be very afraid.
We would be remiss if we didn’t point out that there is still the possibility that Dell will come to its collective senses, as Scheck points out in the full article that “Mr. Tatelman said he will decide ‘in a few weeks’ how to proceed with the music player, and that he may decide not to sell it at all.”
Even if they don’t do it, Dell shareholders should be very afraid that this has come this far, that not only has Rob Enderle been consulted, he’s actually been hired, and that Dell has no hope of competing with Apple on the high end and is therefore consigned to pimping their low- or no-margin OS-limited PCs on Wal-Mart shelves, trying to generate more than double Apple’s revenue in order to make 3/4 of Apple’s profits*.
*Last quarter: Dell posted $16 billion in revenue to make $784 million net quarterly profit. Apple posted $7.46 billion in revenue with $1.07 billion net quarterly profit.
It does NOT get any better than this. >.<
I wish both Dell and Rob all of the success that they so richly deserve.
“the product’s name couldn’t be learned”
It’s the Dell Diddly Doodly. Dell has also hired Ned Flanders as head of marketing.
This is a smart move on Dell’s part. When their new music player starts to bomb, they can consult Rob and he’ll tell them how bad the iPod and Apple is and that everything is actually going to be okay.
Enderle “…said he is still discussing with Dell whether profits would come mainly from the subscription service or from devices tied to it,”
Subscription Service!!! Subscription Service!!!
Because you know how much money there is in THAT!!!
Ridiculing Dell and Rob Enderle is like telling a bum to “Get a job”.
“Apple had 71% of the U.S. MP3 player market in the first quarter of 2008, according to industry analyst NPD Group. Apple’s closest rival was SanDisk Corp., with 11%. Microsoft, which introduced its Zune music player in 2006, had just 4% of the market,” Scheck reports.
Sounds like a Solid Number 2 to me!
Since they license Microsoft OS’s for everything else that needs an OS, do you think they’ll license the Zune-OS for their MP3 player?
This going to be hilarious. I wonder how Rob is going to blame Apple for his, and Dell’s, inevitable failure.
Also, isn’t it a little late for Dell to be trying to get into the music player game?
I checked my calendar, as I swore it was April 1 again…
Seems like a great time to roll out a new player and music service combo, based on the amazing suck-sess microsoft has been enjoying with Zune. I’m sure there’s great profits to be had taking over low single-digits of the online music world.
“When it was first shouted out, ringing through the cavernous halls of the palatial MDN headquarters…”
“…Of the Enderle Group, which consists solely of Rob and his wife, Mary.”
^^^^SATIRE^^^^
ChrissyOne,
When Dell hires MDN, then you’ll have achieved “^^^^SATIRE^^^^.”
I believe I have just travelled back in time: it’s April 1 right?
It seems that Dell has as new strategy lately: (try to)copy everything Apple makes (and fail miserably).
Just look at Dell’s website http://www.dell.com
Hey Micheal, Steve called, he want his website layout back!
I hope Dell decides to do it. I want to see them kill off another PMP.
I want everybody to know that I used my Apple iTele to teleport to Dell’s headquarters and checked out the new player. The player I saw had already been slobbered on by Rob. Left me feeling a little sick. I had to get the teleport out of there.
The new player’s nothing to brag about.
Got to love idiots, Let’s just copy Apple on the cheap and we’ll kill their success. It’s too late for Dell to get back into the MP3 Player market. They let their partner Microsoft take the market share they’ll need to get their foot in the door. The Zune hasn’t put a bent in Apple’s market share, it’s just slowly taken market share away from Creative, and the no name MP3 Players. If anything the Zune has helped Apple’s iPod to gain market share as Zune owners abandon their Zune’s for a better music experience with the iPod.
Dell’s new Diddy Doodoo will not slow iPod sells it might take 1% or 2% market share from the Zune and could absorb up to 10% of the Zune Customers when Microsoft kills off the Zune later this year or early 2009. Dell will no be looking at high volume sells so their cost per unit will be very high which is what Dell does not do well, they would need to sell iPod numbers to get the cost to a point were the devices were profitable something they just will not be able to do with a Diddy Doodoo basic mp3 player even at less then $100.00.
Dell should just accept that they are a Cheap PC Vendor and just sell iPods to their customers. They’d certainly make their customers happier and it’d be more profitable for Dell then trying to sell their own Diddy Doodoo MP3 Player.
Ah, something zune thang won’t understand. Two years on the market and the Zune has 4%….ooooooo I bet SanDisk Corp. is looking in the rear view mirror on that one.
Actually could it be that Michael Dell is not going to sell the company and give the money back to the share holders but drive the company into the ground and give the money to Rob Enderle.
Not a joke? Sure is hilarious.
Gomer37,
Good one… because it is so true!
The Dude abides.
Oh wow, hllken is right! Dell copied Apples site layout! Flattery, desperation, lack of innovative thought?
huh?
Dell? iPod Killer? Rob Enderle?
uhhhh… huh huh…
huh huh ha ha….
HA HA HA HA HA….
HE HE HE HE HE HE…
MWHA HA HA HA HA HA HA HA HA…
HAH HAH HAH HAH HAH HAH HAH HAH HAH….
holy crap… HAH HAH… that is the…. HAH HAH…
HAH HAH HAH HAH HAH….
HAH HAH… funniest…. HAH HAH… HAH HAH…
HAH HAH HAH…. thing… HAH HAH…
HAR HAR HAR HAR…. I’ve ever… HAH HAH HAR HAR….
HAR HAR… he… he… heard…
MWHA HAH HAH HAH HAH HAH HAH HAH HAH HAH….
OH MY GAWD!!!! HAH HAH HAH HAH…
Apple is.. He He he…. doomed….
MWHAAAAA HAH HAH HAAAAAA HAH HAH….
Poor Steve Jobs… AHHHH HAH HAH….
What will he do now?
MWHAAAAAAA HAH HAH HAH HAH HAH….
AHHHHH HAH HAH HAH HAH HAAAAAAA….
OH man… HAH HAH HAH HAH HAAAAAAA….
…
…
huh? where am I?
I think I passed out…
Where was I?…
Oh yeah…
Dell and Rob Enderle equals iPod Killer….
MWHAAAAAAAA HAHAHAHAHAHA HAAAAAA HAH HAH HAH HAH HAH HAH HAH MWHAAAAAAAA HAHAHAHAHAHA HAAAAAA HAH HAH HAH HAH HAH HAH MWHAAAAAAAA HAHAHAHAHAHA HAAAAAA HAH HAH HAH HAH HAH HAH HAH HAH HAH HAH HAH HAH HAH HAH MWHAAAAAAAA HAHAHAHAHAHA HAAAAAA HAH HAH HAH HAH HAH HAH HAH HAH HAH HAH HAH HAH HAH HAH HAAAAAAAAAAAAAA HAAAAAAAAAAAAAAHAH HAH HAH HAH HAH HAH HAH HAH HAAAAAAAAAAAAAAHAH HAH HAH HAH HAH HAH HAH HAAAAAAAAAAAAAAMWHAAAAAAAA HAHAHAHAHAHA HAAAAAA HAH HAH HAH HAH HAH HAH HAH HAH HAH HAH HAH HAH HAH HAH HAAAAAAAAAAAAAA…
What would Mike Dell do? Why, he’d copy Apple in hopes to bring Dell back to some form of profitability. HAHAHAHAHAHAHAHAHAHAHA!!!
@ Fred Mertz
When Dell hires MDN, pigs will be commercial airline pilots.
Morning everyone, what’s so funny? I heard a lot of laughing coming from this page.
it will have no glass whatsoever and will come equipped with a safety cord which must remain attached at all times to prevent it from becoming a dangerous projectile in case of an earthquake.