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A snag in Dell's (DELL) turnaround

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Dell (NASDAQ: DELL) cannot get some of its hottest new products to market. According to The Wall Street Journal (subscription required), the company is trying to diversify away from selling PCs to businesses and pick up a larger sales footprint in the consumer market. New models with spiffy paint jobs and pricing set for students on their way to school have been central to the plans.

The trouble is that delays in parts and bad paint jobs are murdering the program. The Journal writes that "Dell has attempted to quell the mounting frustration over delays by addressing the issue in its company blog." How that will help mollify frustrated customers is a unclear. It may just make them more angry.

The move must be a bit humiliating for Dell. The company had customer service problem three years ago when it began to outsource the function to call centers in India. Dell had to bring in a customer czar to try to solve the problems. The company is selling its new PC in retail outlets including Wal-Mart (NYSE:WMT) which is a departure from its old "direct to customer" sales channel.

But, Wal-Mart can only sell what it gets.

Douglas A. McIntyre is a partner at 24/7 Wall St.

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Last updated: November 24, 2009: 05:52 PM

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