Home Phone and Internet $60/moMay 1, 2006 10:51 AM PDT
Dell whacks prices on select notebooks, desktops
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The Round Rock, Texas-based PC maker is selling an Inspiron E1505 notebook with an Intel T2300 Core Duo processor, 1GB of memory, an 80GB drive, a 15.4-inch screen and a DVD burner for $699 on Monday, down from the usual price of $1,234.
A similar notebook from Toshiba on CompUSA's site sells for $1,249, while a similar Hewlett-Packard sells for $1,199. Gateway clocks in at $999.
Dell is also selling a B110 Dimension desktop with a budget Intel Celeron chip, 256MB of memory and a 19-inch flat panel monitor for $349.
With a 17-inch CRT monitor, the same computer costs $299.
Shipping, usually $99 on budget PCs at Dell and often a wellspring of consumer complaints, is free for a limited time.
Finding the deal on Dell's Web site, however, can take some work, and Dell offers various configurations of similar deals that can be easier to find. The exact deals mentioned in this article were touted in an ad in the San Francisco Chronicle.
"We historically have made these moves to keep us competitive," said a Dell spokesman.
Although the deals are offered for a single day, Dell has a history of following up its one-day specials with similar specials on subsequent days. Back in 2004, for instance, it roughly halved the price of certain notebooks in various deals.
The price cuts in part stem from discounts on components. Excess inventories of processors and other parts are causing manufacturers and distributors to cut prices to get rid of inventories. Similar hot-spot deals will likely pop up at retailers and the Web sites of direct PC sellers over the next few weeks, if history is any guide.
Additionally, Dell is facing a backlash from business customers and consumers. Since 2004, consumers have increasingly complained about Dell's service and support while the company's satisfaction rating with businesses has bobbed up and down.
The company's prices have trended up in recent years. In 2002, the average selling price for a consumer PC from Dell was $1,084, according to research firm IDC. HP's average selling price for the same year was $1,009. The average for all manufacturers was $1,030. In the first three quarters of 2005, Dell's average selling price for U.S. consumer PCs was $854, more than $200 above HP's $651 average. The average selling price for the market as a whole was $744.
The higher prices in part come from the fact that Dell has targeted high-end and midrange buyers. The bargain segment of the market, however, has grown. Both Acer and Toshiba have benefited in recent quarters with more aggressive pricing, according to analysts.
These factors in part converged to cause Dell to lose market share in the first quarter, a very rare occurrence. Typically, Dell grows substantially faster than the market as a whole and gains market share.
If the trend continues and Dell loses market share overall for 2006, it will mark the first time that Dell on an annual basis grows slower than the market since 1989, according to Gartner. The firm doesn't have data for the years before that.
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Still I have to say DELL can have some great deals from time to time. You can buy them and sell them on eBaby and make a profit.
http://www1.us.dell.com/content/products/features.aspx/
entnb_e1505?c=us&cs=19&l=en&s=dhs
It is 3:03 PM Eastern and the site shows the unit for $1033.
They should have just made it free. Even better press, REALLY
great comparison to Macs, and they still wouldn't have had to
actually ship any.
After all, it was the perception of high quality and good support that helped make them dominant in the first place.
With Dell, if they screw up the order, you have to go round and round with some guy in India.
The next thing that went out the window (no pun intended) was the quality of the components that make up the system. The real problem with that is that now that spans into their "enterprise" systems. Next time you get a system from Dell whether it is the least expensive system they have or the best server or managed desktop they have, check the brands of the components.
When you check I think you will be surprised that they use at least what I consider tier 2 companies. Not that HP and the rest don't either but they don't push those same components up to their enterprise product lines.
Like one of the other posters said you can buy an HP off the shelf and if you don't like it take it back. Sending back a Dell is not as straight forward.
Dell needs to stop being an Intel only shop and then they might have a chance at the low cost arena but if they don't then they should get out and get rid of those suppliers that aren't providing tier 1 level quality components.
For the non-technical users I used to recommend Dell rather than a generic box because Dell would take care of them but I started getting calls for help when they were not getting adequate help from Dell so now I just tell them to get an HP from Circuit City since they have a good return policy, and Best Buy has in-store techs, maybe not the best but better person to person than getting frustrated over the phone.
BUY THEM BECAUSE THE PRICE IS CHEAP JUST LIKE THEIR PC`S.WHEN THEY BREAK AND YOU CALL INDIA,BY THE TIME THE PROBLEM IS RESOLVED THE PC IS OBSOLITE.YOU GET WHAT YOU PAY FOR,THATS WHY I BUY HP PRODUCTS.
BUY THEM BECAUSE THE PRICE IS CHEAP JUST LIKE THEIR PC`S.WHEN THEY BREAK AND YOU CALL INDIA,BY THE TIME THE PROBLEM IS RESOLVED THE PC IS OBSOLITE.YOU GET WHAT YOU PAY FOR,THATS WHY I BUY HP PRODUCTS.
- take comments with a grain of salt
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by heslingaj
May 2, 2006 10:28 AM PDT
- I have a great resume of computer expertise, have worked in businesses that use hundreds of Dell computers, and have owned 5 Dells at home. All of this leads me to a very positive opinion of Dell. The whiners and company reputation assassins you find in comment lists like this should not guide your assessment.
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See all 35 Comments >>Although it is unfortunate that Dell (like many others) relies on India for home (but not business) tech support, it's also true (in my experience) that they make quality PCs for a competitive price and that they adhere to industry standards more than some other vendors (which is valuable if you want options in upgrades, etc.). Your mileage may vary, but most of the comments on this article aren't worth the bytes on which they're printed.