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March 21, 2008 3:46 PM PDT

Dell taking more risks

by Erica Ogg

Much has been made of Dell's retail makeover, but it's actually part of a larger trend toward experimentalism.

The company that has largely avoided unproven product categories is jumping all over them suddenly. Case in point: several years ago, when Microsoft was pushing tablet computing, Dell was fairly adamant that, no thanks, tablet PCs weren't something the company was interested in making.

"I think it is really unknown at this point how big the market is," CEO Michael Dell said in a 2002 interview about tablet PCs. "Dell, of course, likes to participate in high-volume markets, and until we can determine the size of the market we are not ready to decide at what level we will participate."

Dell Latitude XT

The Latitude XT is Dell's first foray into tablet computing.

(Credit: Erica Ogg/CNET News.com)

Fast-forward to late 2007, when Dell introduced its first tablet PC, the Latitude XT. Tick forward some more to this week when the second version, the Latitude XT2, was leaked onto the Web. Tablet computing, to Microsoft's chagrin, still has never really taken off--tablets comprised 3.25 percent of the worldwide notebook market in 2007, according to market research firm IDC. Yet, Dell's staking out its claim in that category.

So what's changed? Well, almost everything.

"The old Dell was about how everything had to improve with scale. In other words, any fixed cost investment had to get more profitable with volume," said Roger Kay, analyst and president of Endpoint Technologies. But after the leadership change a year ago, "Michael (Dell) said there were no sacred cows when he took back over."

Now Dell can't seem to stay out of niche markets. Besides the Latitude XT, in the last year Dell has launched a ruggedized laptop, a consumer-friendly all-in-one desktop, and began offering Linux pre-installed on some PCs. Plus, there's constant chatter about the company re-entering the handheld market.

The PC industry is moving toward increased mobility, so tablets and rugged notebooks are part of a larger trend. But they also represent opportunities that Dell can't afford to miss anymore.

In Dell's heyday, its mammoth commercial computing clients would choose a variety of machines they wanted Dell to supply; if one of them was too much of a niche product, Dell would simply partner with a manufacturer that did make it.

"But now they're saying, we don't want to keep giving away those opportunities because that's decent margin (being left) on the table," said Richard Shim, PC analyst for IDC. Now, "they go out and create their own versions of these products."

Within the overall trend toward mobility, commercial clients, and even consumers, are demanding more and more specific usage models, and Dell, it seems, is trying to adapt.

"The market is evolving beyond generic solutions. There are new opportunities in more specialized products," said Shim.

Evolution seems to be the name of the game down in Round Rock, Texas, these days. The company has undergone a major transformation of its business plan since Michael Dell stepped back into the executive suite as CEO.

Along with that has come this marked shift toward experimentalism at the 20-year-old company. Though Dell's hallmark for its first two decades in business was its sharp, efficient supply chain and direct-to-customers sales model, now you can find a Dell almost anywhere you look: Best Buy, Staples, Wal-Mart Stores, and more.

Its product choices are different, too. "In the past, Dell would adopt new technologies faster than most, but new products more slowly," noted Kay. While it was happy to move from one processor generation to the next fairly rapidly, Dell was far more circumspect about getting into a niche market like PDAs or music players. Of course, Dell's expertise has always been in the enterprise market, which isn't particularly fast-moving. But targeting consumers is a different animal--they expect more product innovation and faster product cycle times.

Dell rugged

Dell's ruggedized laptop, a first for the PC maker.

(Credit: Dell)

In trying to garner more consumer attention, Dell also has been more adventurous, with firsts for it like colored laptops last summer, the stylish design of the XPS laptop line, and the XPS One, an iMac-esque all-in-one PC. Dell even went as far as co-branding the XPS gaming line with World of Warcraft.

"It's more like they're dropping a lot of bait in the water to see what works," Kay noted.

Sure, Dell is trying a lot of new things, but it's got to do something different. No longer the largest seller of PCs overall, it's also recently fallen behind the Acer-Gateway-Packard Bell behemoth in notebook sales.

"They have to be risky to reverse their misfortunes here," Shim said. "That takes time when you're trying to change your personality. I'm sure they'll make missteps along the way because everyone does. But the positive is that they are making these changes. The writing is not just on the wall, it's in neon."

Erica Ogg is a CNET News reporter who covers Apple, HP, Dell, and other PC makers, as well as the consumer electronics industry. She's also one of the hosts of CNET News' Daily Podcast. In her non-work life, she's a history geek, a loyal Dodgers fan, and a mac-and-cheese connoisseur. E-mail Erica.
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Add a Comment (Log in or register) (19 Comments)
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Customer Support Matters More
by Rants&Raves March 21, 2008 9:28 PM PDT
Dell may try to win customers with a wider product line, but wait and see what will happen when all of these new customers meet with the absolutely horrendous and arrogant technical support that Dell is known for.
Reply to this comment
QVC sells Dell
by paulsecic March 22, 2008 10:59 AM PDT
® 1946
Buy GOLD
by onlyauser March 23, 2008 1:11 PM PDT
Buy Dell Gold Tech Support

The good stuff ain't free anymore.
I think..
by ServedUp March 22, 2008 4:04 AM PDT
since Dell is experimenting with "change" they should also
reconsidering rebranding the company with a new name.
Because when I think of the word Dell visuals of "Walmart",
"Kmart" and the word "cheap" are thought up. Not to mention its
such a self serving egomaniacal name.

As for Dell Industrial design although its better than the beige-
boxed-cubicle-efficent computers they had before to me the
XPS line looks over-done almost as if aMichael Dell himself gave
the Head Designer Position to stereotypical pimp portrayed in
the movies.
Reply to this comment
Depends on what you do for a living.
by Penguinisto March 22, 2008 10:51 AM PDT
When the word "Dell" comes up for me, I think servers.

The Power Edge series is relatively inexpensive (Dell sells 1U
servers for as low as $1600), but they run quite well, and have
lasted for years beyond their orginal specs.

/P
Where Are The Wolfdale Desktops?
by Stating March 22, 2008 8:48 AM PDT
Waiting and waiting for dual and quad core Wolfdales. What is the holdup? The Q6600/6700 is yesterday's news.
Reply to this comment
Dell Tablet PC???!!
by ultimatebuster March 22, 2008 7:32 PM PDT
as long as they don't catch on fire, i will get one. Just kidding...
Reply to this comment
Customer Service Nightmare
by geofos March 23, 2008 5:56 AM PDT
Three weeks ago I purchased a 19 in Widescreen Monitor from Dell. Last week I noticed a thin purple line extending down the length of the screen that appears and disappears from time to time. I called Dell and went through all the troubleshooting advice the tech named "Bill" told me to perform in his thick indian accent. He told me to try it for a week and if it still persisted to call back. So this past Thursday the problem still persisted, so I called again. This rather rude person on the other end told me to keep a journal and write down every time the problem occurred. Perturbed, I told him the monitor is still practically brand new and I also had a three year warranty on the item and I'd like an exchange. He refused, telling me it could be a power surge in my building. I told him I'd never encountered such problems in my home and that the computer and monitor are connected via a high capacity power strip with surge protector. He still wouldn't budge, telliing me to call back in a week if the problem persists. I am so disgusted with Dell and their, well contempt for their customers. I agreed to keep a log but reminded "Bill" that I'd paid over two hundred dollars for the monitor and wanted it right. If anyone knows any way around dealing with this ridiculous tech support staff please post a reply to my message. It would be nice to deal with someone in New Jersey as opposed to New Delhi.
Reply to this comment
So simple it is a JOKE!
by onlyauser March 23, 2008 1:09 PM PDT
Now-a-days if you do not pay for great support you ALWAYS end-up with an off-shore phone person that has been 'working-on' English for only 6 months or so attempting to read a meaningless dead-end script. This type of support kill customers that expect and need to avoid pure support HELL that ALWAYS SUCKS!

All you NEED to do is BUY Gold Tech Support. Keywords being: NEED and BUY

Good luck Pals, that is just how the new game rolls from what I am experiencing from Dell.
View reply
Re: Customer Service Nightmare
by DellCA March 24, 2008 11:31 AM PDT
geofos, I'm a customer advocate here at Dell headquarters in Texas. From what you describe here it definitely looks like a failure with the monitor. I am not sure why a replacement was not set up when you called back the second time, but I would like to fix that for you.

If you can contact me directly at customer_advocate@dell.com with 'ATTN: Larry (monitor)' in the subject (to ensure it gets to me) I will be more than happy to set up the replacement. There are some specific pieces of information I would need, but I'll wait to go over that in email.

If you have any questions for me I will be more than happy to answer them. If you have other feedback you wanted to provide I will be happy to have that as well.

Larry
Dell Customer Advocate
View reply
Amen!
by geofos March 23, 2008 5:58 AM PDT
I am currently dealing with these idiots at Dell's Customer Service in India concerning a monitor purchased in the last month that's defective. I will never buy another item from Dell.
Reply to this comment
GOLD TECH SUPPORT --- Read because gold really means gold.
by onlyauser March 23, 2008 12:27 PM PDT
It is the EXACT opposite with Gold Tech Support.

I have Dell Gold Technical Support. One word to describe this group is AMAZING (not a joke, not an opinion). I have a new Dell Precision 690. Dual Zeon Quads and a couple of great NVIDIA Quadros.

When I received this unit there were some configuration problems with the system that had corrupted the OS. My IT Company deferred to Dell Gold Tech Support. Top-tier customer service experience, respect, and performance. Through my process with Dell gold I received instant EXPERT feedback. Immediate return phone calls. A FOUR hour walk-through for a total reconfiguration of my Dell 690 (hardware, New OS, almost everything was altered). Wow, this tech knew his stuff because is was a 100% EXPERT and set this thing up to PERFECTLY address my workflow in every single respect and detail. Even things I was not doing and I am not an armature (20+ riding the digital pony---every single digital file is archived and retrievable by date and keyword since 1998).

He knew the machine inside and out and used the exact same unit for his personal home machine. I doubt very few could have set-up my unit up like this Dell Gold Tech. My IT people need to get paid more for knowing of Dells top experts 'GOLD' and how it works. Every Gold Tech I have ever spoken to is a 100% EXPERT...the best for your unit...period.

Defective items? Next day over-night...hehe. No questions, just send your defective unit back when you get the new one. A delivery company delivered Dell product to wrong office in our building. Dell's response? Remove original charge and overnight the speaker bar. Sure, only a $16 dollar monitor speaker bar but how does this? Not many for me that I can think of except Dell.

Gold Tech Support. If you do not have it you REALLY do not know YOU need it even if your are a seasoned user that has done most of this type of stuff before. ALWAYS buy GOLD Support. You will never-ever regret it.

GOLD really means GOLD
IMHO best support on Planet Earth.
Reply to this comment
Thanks
by kellyatdell March 24, 2008 11:17 AM PDT
Onlyauser,
Thanks for sharing your Gold Tech Support experience - and thanks for being our customer.
LOL
by The_Decider March 24, 2008 3:33 PM PDT
What a joke!

I get better than that for free at HP.

Dell sucks.
Very viral reply
by R.Jefferson March 24, 2008 4:08 PM PDT
Someone claims to be a dell damage control rep in one post and then there is this word processed, talking points post.

You should put in a few stray typos and bad grammer to keep it real.
Dell doesn't need to take risks
by The_Decider March 24, 2008 3:28 PM PDT
They need to start offering quality products backed with good support.

Something they currently do not do.
Reply to this comment
Faulty Monitor
by markiv_81 March 24, 2008 9:19 PM PDT
Hi,
I work with Dell I would try to help you if you can provide me with the monitor serial number at the back of the monitor. It is a long alphanumeric number. You may contact me at vikram_fernandez@dell.com . For ease of finding the fault you may check with the following.
1) Does reseating cable at monitor / computer end resolve problem.
2) Does the problem show itself during the monitor self test that is when the monitor cable is not attached to the computer.
This is important to isolate the problem to the cable or the monitor or the computer. When the monitor is sent the cables are normally not sent hence it is safer to ensure there is no cable fault.
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