Beleaguered Dell scraps plans for New York retail store

Apple Store“Dell has decided to halt plans to open up a second retail outlet outside New York City, several months after cautiously saying it would give it a try, a company spokesman said Wednesday,” Edward F. Moltzen reports for CRN.

“CRN learned that it appeared Dell was set to pull the plug on the New York store, and the company confirmed it Wednesday,” Moltzen reports.

“The rollout of two retail locations [Dallas, New York] was considered a first entry by Dell back into a retail market it exited several years ago after limited, if any, success,” Moltzen reports. “As was planned for the West Nyack, N.Y. outlet , the Dallas store doesn’t stock inventory but assists customers in ordering products from Dell and getting help with technical issues.”

Full article here.

[Thanks to MacDailyNews Reader “Robert” for the heads up.]
The contrast ratio between Dell and Apple continues its run to infinity.

As we wrote in our MacDailyNews Take on May 30, 2006 regarding Dell’s retail effort, “This classic Dell experiment has ‘failure’ stamped all over it.”

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Fortune: Apple Inc. is America’s best retailer – March 08, 2007
How Apple Retail Stores beat Best Buy, Neiman Marcus, and Tiffany – December 19, 2006

Will Dell’s retail computer stores work sans inventory? – May 30, 2006
Dell to open retail stores – May 22, 2006

Beleaguered Dell’s numbers don’t add up – April 09, 2007
Jim Cramer: Michael Dell is no Steve Jobs – March 30, 2007
Beleaguered Dell finds evidence of misconduct in internal investigation – March 30, 2007
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AP: Time to think different, Apple Mac beats Dell on price, software compatibility, and more – August 23, 2006
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Fortune: Michael Dell reiterates he’d love to sell Apple’s Mac OS X if only Jobs would license – January 22, 2007
PC box assemblers like Dell and others wish Apple would license Mac OS X – August 31, 2006
Michael Dell say’s he’d be happy to sell Apple’s Mac OS X if Steve Jobs decides to license – June 16, 2005
Fortune: PC makers realize Mac OS X is superior to Windows, they’re wooing Steve Jobs for licenses – May 26, 2005

48 Comments

  1. @Petey.

    The real reason they won’t license OSX to Dell or anyone else is that they already tried this. My user experience with my Power Computing machine was as good as with any of my Macs. However, Apple makes about a 30% margin on hardware, so on their overall product mix (iMacs, MacPros, Laptops) they probably make somewhere around $400 per machine sold.

    I don’t know for sure what the cost for an OEM license for an OS is in the Windows world, but I believe it is around $100.

    Apple lost their ass once by trading Mac sales for OS sales, they won’t do it again.

  2. Dell has offered SUSE and RHEL for a long time now with its servers – which is where Linux belongs. Desktop Linux reeks of perpetual work-in-progress and is as much of a competition to Windows or OSX as GEOS. There’s nothing Dell can offer that will differentiate it from HP, Lenovo, or any other beigebox manufacturer. OSX is truely the only real alternative to Windows from Desktop-to-Server.

  3. The Dell store in West Nyack is actually pretty close to the Apple Store….just a few stores down on the same side and floor of the mall. It’s not open yet, but there’s a huge ugly Dell poster/banner. Should be interesting once it opens.

  4. Dell is using mall kiosks in Canada to ‘help’ with orders. There are lineups at each kiosk. They give free internet access at the kiosk and everyone in the line up is checking their e-mail.

    The problem with letting people see the Dell product before they buy it is that once you see the poor quality of the low end junk Dell sells, you go elsewhere. Dell is shooting themselves in the foot with their newest strategy.

  5. . . . they probably make somewhere around $400 per machine sold.

    The estimate seems high, but maybe not for the top-end machines. The clones were a lot faster, too.

    Magic Word: economic (maybe because of the dollar sign).

  6. the dell store in the palisades mall in nyack, ny is not even a store. it’s like a modified push cart that is in the middle of the pedestrian area, about half a mall away from the apple store, which isn’t a push cart.

  7. I’m sure glad I sold my stock in DELL when I did – the same day that Dell took control of the company and started firing folks – the guy isn’t Steve Job! Or for that matter anything close to being Steve Job!

    The times are a catching up with Dell and that a very good thing!

    One can only sell crap for just so lone and then it slaps you in the face and it over.

    Dell should take his ill-gotten gains and find himself a very small hole and clime in it!

    The world has moved on…

  8. Please, I implore you, enough with the now-meaningless phrase
    “Beleaguered Dell!”

    OK, it was cute the first 150 times.

    Now, you just annoy me.

    Get a fscking thesaurus or go play with your Wii!

  9. “MDN (More Dumb News) posts more drivel. “Beleaguered Dell”, as in the company that sells more computers every two weeks than Apple sells in a year……….”

    Meaningless. Enron sold millions worth of energy every day and that didn’t keep them afloat. Revenue does not equal profit.

  10. WOW… How innovative! LOL
    Dell will open a store, start selling Linux to fight its way through and gain some market share again. That’s the plan at least. Also, don’t be surprise for Dell to come up with a Dell branded phone! Soon you will see Dell logo to change to some fruit… wanna guess which? If you ask me, it would be a lemon.

  11. Shhhh… Don’t tell anyone this:
    They actually did open the New York store. It was open for a month. Nobody showed up. They’re trying to cover this up by saying they decided not to open it and hope that nobody notices.

    I only know this because I went to a store next door that was too busy and had to use the Dell bathroom…come to think of it, it may have just been a desktop display unit.

  12. Stores where you can’t actually buy something and walk out with it will never see widespread success.

    How hard can this be for corporate suits to grasp?

    No wonder Apple is kicking butt – they are actually willing to look at a given situation and ask “what works best in this scenario?”

    Dell and everyone else seem to have their heads where the sun don’t shine. “We don’t keep inventory, we build on demand, so we’ll do that in every situation whether it’s appropriate or not.”

  13. Guess I need to go see if the Dell store here in Dallas is even still open!

    The Dell store is on the second level on the west side of the NorthPark Center mall, and the Apple store is on the first level, within easy sight of each other – maybe less than 2 store-fronts away if they were on the same level. Always interesting to walk by one and then the other. You can always count on the Apple store being bustling with people in various stages of making their purchase or asking questions or just browsing, and inevitably the Dell store has 4-5 employees clumped near one kiosk-looking station drawing straws to talk to the one lone customer who just walked in.

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