With the announcement of Dell Inc. (NASDAQ: DELL)'s new colorful laptops and the re-branding of some of its desktops, the computer maker is attempting to re-ignite excitement in its dull product lineup at the exact right time it needs to. I'm quite sure that Michael Dell's recent executive hires were given marching orders to get things underway as soon as possible, and here we are at the start of those results. I've referenced Dell's new strategy a few times in the last couple of days, but what's new here is what could be perceived as Dell's initial attempt to take on the "style and substance" market that Apple Inc. (NASDAQ: AAPL) is famous for.Dell's newer XPS laptops, as noted by Rob Enderle here, are more reminiscent of Apple MacBooks and upper-crust Sony laptop computer systems than kludgy and boring Dell laptop systems. This is a good thing, as even Apple does not have color options in its laptop selections right now -- it's either white or black. Same for Sony's venerable Vaio line, which has great design but few options for specific color personalization. What Dell has going for it is the mainstay of its business model for nearly two decades: selling direct to the customer. If Dell can sell many different options in terms of colors, materials and looks for its laptops direct to the customer and not attack retail (where inventory turns on custom products are really hard to predict), Dell may have a chance to become much more relevant that it has been in the last five years.
So, Dell may be starting, just this week, with a specific, multi-pronged approach: starting a small retail experiment with the world's largest retailer (as of June 10th) while simultaneously trying to court the "Apple-type" customer who may choose to opt for those new colors, aluminum plates and svelte lines in a laptop. The key difference here is availability: Apple's laptops, like the MacBook and MacBook Pro, are sold online and in stores and in Apple's retail stores (and other retailers). Apple's gems are also only available in white or black. By contrast, Dell's new XPS laptop systems are, for now, only available from the company's website (consumer direct sales), and will come in many more colors than just white or black. Will customers bite at these new Dell systems? Hard to say this week, but I'll be paying close attention.











Reader Comments (Page 1 of 1)
6-28-2007 @ 11:10PM
monty said...
It doesn't matter how spiffy looking a computer Dell manufactures and sells. In the end you are still going to end up working with Dell service somewhere, sometime... which will end up making an enemies of most of its customers. I have a great Dell laptop, but cringe anytime I have to contact customer service or tech service about something and have vowed to never purchase another Dell product and paid off and closed my account.
6-28-2007 @ 7:27PM
peterr said...
This nothing more than adding flames and pinstripes decals to your ford pinto.
6-28-2007 @ 8:23PM
sister said...
Their strategy must be working. I ordered my new ruby red XPS 1330 today. It has all the latest bells and whistles, and I can't wait to get it!
6-28-2007 @ 8:51PM
mongul said...
Dell really needs a consumer-focused strategy, at the moment Hewlett-Packard is stronger than Dell in the consumer segment and that's where most of the growth is occurring, the growth is fueled by consumers transitioning to notebooks. Not surprisingly, HP is the #1 PC manufacturer as of late. Dell is still #1 in the United States but HP is closing the gap, HP sales grew 25.8 percent last quarter, Dell shipments declined by 7.8 percent.
Color options are not the be-all end-all, and Dell is playing catch-up, but at least they are trying something. The days when you could sell bulky business notebooks to consumers are over, Dell now has a dedicated consumer group to produce PCs specifically tailored to consumers.
"This favors Dell’s direct model," give me a break. Enderle still doesn't seem to realize, for this to work they need to go retail. The old "direct only" business model doesn't suit consumers. Alex Gruzen, senior vice president of Dell’s consumer products: "We have a broader retail strategy, and over the coming months, we will announce more partnerships, both with Wal-Mart and with other retailers."
6-29-2007 @ 1:35AM
mac guy said...
So... take a P.C. and add color and it will compete with a Mac? They still don't get it do they! Apple is an innovative company, not a "me too" company. A P.C. is a "box". Any kid can buy the parts off the shelf and build it. Microsoft provides the "brains", (the OS). What's missing is the "magic", or the fun and excitement. Just look at the iPhone...
Go Dell!!! ROTFLMAO