Michael Dell buys.. Dell

[DuckieTigger]

Originally Posted by Andrew H.

But I think that's largely true of their consumer computers, too - Dell didn't run into problems because the computers weren't reliable; they ran into problems because their computers were perfectly functional low end laptops: somewhat clunky, somewhat heavy, with and indifferent (but functional) keyboard and a low end (but functional) monitor.

So you are saying that Dell's problem is that their computers are too reliable and don't need replacing? Or that even the low-end range of their computers was reliable enough to not need to upgrade to more expensive? I really doubt that the profit margin is any different on their low end and high end models.

[Andrew H.]

Originally Posted by DuckieTigger

So you are saying that Dell's problem is that their computers are too reliable and don't need replacing? Or that even the low-end range of their computers was reliable enough to not need to upgrade to more expensive? I really doubt that the profit margin is any different on their low end and high end models.

I don't think reliability hurt them; I was just pointing out that lack of reliability was not their problem.

And, yeah, I think that there is much less profit at the low end. Even if the margin is the same (and I'm not sure that it is), you will make more *profit* on an expensive machine as opposed to a low end machine. This would be similar to the problem that netbook makers had - they sold a lot of machines but made very little profit in doing so because there's just not much left when you're selling a product so cheaply.

[l_macd]

Another happy Dell user here. We've currently got two desktop PCs and a laptop, two of which are pretty old & slow in computer terms, but they seem pretty bomb proof. My desktop is the most recent addition, at less than 2 years old.

I foolishly tried a different PC after a recommendation from a friend, but had nothing but problems with it, so returned to Dell and all is fine again!

[afv011]

Dell Inc's largest independent shareholder, Southeastern Asset Management Inc, has told the computer maker that a $24.4 billion buyout bid undervalues it, adding to a chorus of investor dissatisfaction with the landmark deal to take it private, two sources close to the situation said.

Not smooth sailing for Mr. Dell. Southeastern wants $24/share, far more than the $13 and change Mr Dell is offering.

Source

[Dubstepper]

Bought a Dell way back. Don't remember if it was good or not. Now I just build my own tower.