Beleaguered Dell’s OS-limited PC sales ‘declining rapidly below expectations’ – analyst

“Dell’s moves to lower prices, hire more understandable customer service reps and stop product fires do not appear to be helping its immediate fortunes,” Ashlee Vance reports for The Register.

“Think Equity analyst Eric Ross warned today that channel checks in Asia show Dell’s PC sales ‘declining rapidly below expectations.’ Dell will likely struggle to correct the sales slip before the end of its third quarter, according to the analyst, and now faces a ‘near-impossible’ situation,” Vance reports. “The hardware maker may well need to issue yet another mid-quarter revenue warning – a process that’s becoming a tradition in Round Rock.”

“Dell’s management has been doing everything it can think of to try and revive the company’s fortunes. Sadly for investors, ‘everything’ doesn’t include all that much. Dell has moved to cut prices, eliminate rebates and hire more customer service representatives, thinking this will restore its image as a decent, low-cost computer supplier,” Vance reports. “In the meantime, exploding laptops and ongoing customer support horror stories undermine Dell’s ‘we’re better now’ pitch.”

Full article here.

“ThinkEquity analyst Eric Ross, has a ‘Sell’ rating on Dell,” The Associated Press reports. “Dell preannounced a significant profit shortfall in its previous quarter, blaming falling prices and a slowing personal computer market. The PC market will likely continue to struggle, Ross said.”

MacDailyNews Note: Except for Apple, that is. From the info we have, Mac sales aren’t struggling.

The AP continues, “We have heard PC makers believe 2H06 is much flatter than they previously expected…” Ross wrote in a note to investors… Among Ross’ laundry list of problems faced by Round Rock, Texas-based Dell is a “management team clearly in disarray with factions fighting for power,” as well as a loss of key employees to major competitors.”

Full article here.

MacDailyNews Take: Did Michael Dell think “we’re coming after you, you’re in our sights” was a joke? Bzzzt. Dell should attempt the impossible and Think Different™ about that statement (Jobs wasn’t kidding) and his company’s limited future. Beleaguered Dell, with their OS-limited, economy-grade, ugly PCs simply cannot match Apple’s Mac offerings.

Why buy a Dell when Apple’s Intel-based computers will run both Mac OS X and Windows?

What would we do if we were in charge of Dell? Beg Steve Jobs for a Mac OS X license. We’d kowtow until bloody. Upon failing to achieve that miracle on earth, we’d shut it down and give the money back to the shareholders.

Related articles:
Fortune compares Mac vs. Dell: ‘you’ll get more for your money with Apple’ – September 11, 2006
More trouble at Dell – September 11, 2006
AP: Time to think different, Apple Mac beats Dell on price, software compatibility, and more – August 23, 2006
More blood on Apple iPod’s Click Wheel: Dell’s ‘DJ Ditty’ flash-based MP3 player is dead – August 22, 2006
Thurrott pits Apple Mac Pro vs. similarly configured Dell, figures out the Mac is less expensive – August 18, 2006
Microsoft Windows five times more expensive for users than Apple’s Mac OS X – August 15, 2006
Apple Mac Pro with/ 20” Cinema Display less expensive than Dell Precision 690 sans monitor – August 10, 2006
Is Dell doomed? – August 24, 2006
Windows portion of PC industry has serious issues while Apple’s Mac thrives – August 24, 2006
Survey shows big jump in consumer interest in buying Apple Mac; Dell takes steep slide – July 06, 2006
Apple passes Dell in market value – May 02, 2006
Dude, you got a Dell? What are you, stupid? Only Apple Macs run both Mac OS X and Windows! – April 05, 2006
More blood on Apple iPod’s Click Wheel: Dell dumps ‘DJ’ hard-drive MP3 player line – February 04, 2006
Apple Mac is #1 in European education market, pushes Dell down into second place – February 03, 2006
Why buy a Dell when Apple’s Intel-based computers will run both Mac OS X and Windows? – June 08, 2005

27 Comments

  1. Not that I wish Dell well or anything, but I am always suspicious of “channel” analysts. The only channel on the sales side at Dell is Dell. I haven’t heard any news from them. And if I were Dell, and some supplier blabbed about poor shipments to an “analyst”, said manufacturer would be off my list of approved manufacturers in an New York… err… Texas minute.

    How many times have we heard that the “channels” indicate that iPod sales have tanked? How many times has it been accurate?

    Just sayin’….

  2. Master of Puppets,

    Why, how sophisticated you sound. While you have been “…coming to this site on and off for years,” I have been putting my money where my mouth is/was for years. And the value of my AAPL holdings multiplied by between 12 and 13 times.

    Most of this year, Apple’s unit sales were held back by their transition to Intel, just as the latter transitioned to a new chip architecture along with having to ramp up its volume, given that it was using new production lines. Of course Apple couldn’t expand greatly, given the delivery limitations of Intel’s ramp up. But the transitions, Apple’s and Intel’s are about over.

    During the October 2006 quarterly report and guidance session between Jobs and the analysts, the crushing stupidity of “Apple sales are slowing as WELL…” will be exposed when Apple blows the doors off the notion that Mac sales are flat.

    Thank you for not investing in AAPL. It has kept the price low for those of us who can see what is happening.

    MW: pressure, as in Apple’s squeezing the life out of Dell.

  3. Believe me when I say this: the Vista introduction will be a non-event. Gamers may move quickly to the new Windows, but that will be it. It will be like the introduction of XP — virtually nobody will buy boxed versions to upgrade existing hardware; consumers will adopt gradually as they replace their PCs over the next three years; and businesses will mostly ignore Vista for years, as they wait for a stable version.

    I don’t think consumers are capable of getting excited about a new version of Windows. Microsoft desperately wants a repeat of 1995, and I don’t think it will ever happen. We just aren’t that naive anymore.

  4. Our Corporation used to buy Dell computers exclusively, until about 4 years ago when we switched to Compaq (now HP). The Dells from over 5 years ago were much better built than they are today. The HP’s, while cheap, are much better put together than Dell computers are. This is why Dell is hurting. Their reputation is catching up with them. This has been coming for years and years, and they won’t be able to turn around the bad perception over night, if ever.

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