As many of you already know, Dell is on its way out of business. The company is doomed for many reasons.
1) They get most of their revenues from corporate spending. Corporate spending has been light for the past few years and will get much lighter going forward. The consumer has been carrying the economy for a long time. During that time, Apple and HP have been cleaning up and taking market share from Dell left and right.
2) Dumb acquisitions. Let’s buy Alienware and still continue our own XPS line? Uh yeah that makes a ton of sense.
3) Crappy quality. Sure everyone can bitch and moan about some poor product they got from j-random company. But Dell’s quality problems are endemic. They make some seriously bad computers now. Because of their quality issues, my (rather large) employer has yanked Dell notebooks from the internal procurement site. Been that way for a while and probably will.
4) Dumb decisions. They thought that they had muscle and power to make unilateral decisions and that their customers would still keep coming. Um, no. How long were people clamoring for AMD-based machines from Dell? They finally caved (sort of), but lost a ton of business to IBM and HP in the meantime.
5) Poor service. This is well documented I’m not going into this.
6) Screwing the consumer. I have a D600 laptop through work. I was looking into getting an iGO power adapter for when I travel. One charger for laptop, phone, iPod, etc. Great concept. Only one problem: Dell laptops can only be charged by Dell chargers. They actually go through and detect that you’re using a Dell charger. It will still let the notebook run on the charger, but it won’t actually charge the batteries. Stupid stupid stupid. It’s idiotic stuff like this that pushes people to competitors.
Having said this, Dell is probably about as screwed as it can get. There are two places to go from here: Up or bankruptcy.