When Dell, Inc. (NASDAQ: DELL) reported quarterly growth of 9% last week, the market still found ways to disparage the PC maker's progress in cost cutting and gaining on its largest foe, Hewlett-Packard Corp. (NYSE: HPQ). Still, Dell's move into retail over a year ago was no more of a semi-brilliant move rather than a desperate survival tactic. It's worked well, as Dell's fortunes have recovered nicely with the large assortment of retail consumer laptops found at all the top retailers in the U.S.But if you're in the hunt for a laptop this holiday season for yourself or as a gift, where are you headed if you're determined to touch and see that new purchase before buying it? From my experiences lately, you'd be better off hitting Best Buy, Inc. (NYSE: BBY) rather than Wal-Mart Stores, Inc. (NYSE: WMT). The largest consumer electronics retailer carries a whole slew of Dell laptops in its stores and on its website. Wal-Mart, by comparison, carries just one or two models in most Supercenters in my area, has a meager product selection at its website, and its laptop prices are almost always higher.
Yet, a recent survey found that the number of consumers planning to shop for electronics at Wal-Mart rose 50% from a year ago, while 14% fewer shoppers said they would go to Best Buy for that new electronics or PC purchase. This is a case of Wal-Mart euphoria: when the pennies need to be saved, consumers will say they'll hit Wal-Mart for anything and everything. Reality is different, as I explained before. If you want significantly better discounts, a significantly larger selection and actual, working units on display, Best Buy has Wal-Mart beat handily. If consumers don't recognize this when shopping this holiday season, I'd be amazed.
Warren Buffett, tells us more!
Oil has dropped $13, so gasoline should drop 30 cents, Americans hope
Wal-Mart's new Supermercado concept could be huge
Reader Comments (Page 1 of 1)
11-24-2008 @ 3:59PM
BHarrison said...
According to the friends, family, and acquaintances whom I've spoken with, EVERYONE is planning on having rather modest and lean Christmas / holiday season. And a disastrous holdiday season is just going to accelerate the economic demise of our nation.
Where is the FULL DISCLOSURE and TRANSPARENCY that were promised by Congress aboutthe bailout????
There can be no "faith and confidence" in the markets until that is provided. Meanwhile they are trying to slowly release the bad news only when they are forced to do so without any alternatives.
The CORRUPT CEOs, CFOs, and uppermanagment are STILL running the corporations. Who can have any faith and confidence in their representations . . . especialy when they are still getting their exorbitant salaries and compensations, which "comes off the top" of the corporations income. They ARE still defrauding the American people . . . and the American people are NOT going to invest in their corporations.
11-24-2008 @ 5:42PM
henry said...
why dont Dell and HP quit some of there outsourcing...... ?????
11-24-2008 @ 5:44PM
henry said...
Bharrison, you are so right!!!!
11-24-2008 @ 6:01PM
allen thomas said...
i number among those who see the 'Big Three' problem as a spin-off of the issue of big unions.
while i am NOT anti-union, we should recall that the same environment that produced these greedy, larcenous CEO's is the environment which gave rise to the UAW.
11-25-2008 @ 2:02AM
Jessy Scholl said...
Frankly while I like Best Buy (and the fact that my brother is considering Best Buy for his next computer purchase), People are going to see that Wal-Mart ad in Thursday's paper for a $199 laptop with Windows Vista Ultimate complete with 10 GB's of RAM, 200 GB's of Hard Drive space, and not much software except for Works, a 60 day trial subscription to Microsoft Office 2007, IE 7, and software loaded by either Dell or HP. Call me crazy, but once it hits 6 AM Friday Morning with only 10 laptops available in each store and each store only making five available for a five hour early bird special, there will be a rush to pick up the deal with a much better chance of getting mugged, going down in YouTube glory, or ending up as the lead on this weekend's Drudge Report.
11-25-2008 @ 8:45AM
allen thomas said...
i need a new computer, but the selection here in Wal Mart is sort of pitiful. i'll keep going back & tracking prices, etc. but here Offc Depot appears to be in the running, but W.M.---- i hardly bother.
actually if things are really atcrunch level, i'll be watching after T'giving & maybe after Christmas. the retailers are on to all this so i'm not too optimistic.
a.