Dell's Profits Plunge 79 Percent as PC Maker Mulls Its Future

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PCWolf

If Dell would Increase Quality, Lower Prices, & Move Customer Support back to the US, They can make a comeback. If not, they will end up like Gateway. Nothing worse than dealing with those dell CS Indians when your trying to get something replaced under warranty.

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ElderJefferson

I feel like a poor bum now with my two Dell laptops sitting here. One has a broken cd/dvd drive (tray won't work), and my Hindustani apparently wasn't good enough to broker a deal.

I'm a sucker for cheap hardware, so Dell has my money on these two computers. Other than the broken drive and poor CS, I guess I don't have any complaints.

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Ninjawithagun

Well said! Dell has completely lost perspective of their customer needs. Highly overpriced products followed by absolutely horrible customer support are two nails already driven deep into Dell's perverbial business coffin. Alienware is the perfect example of providing a product that 90% of the general consumer population can NOT afford because it is overpriced by $500 to over $1000 on average when compared to the competition. If Dell doesn't come clean soon and drastically adjust their business engine, they are indeed doomed to failure.

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nlncmp

Whether you believe the PC market is shrinking, no one can deny it is changing. The competitors range from smartphones to consoles to the cloud.

The key focus for investors now should not be who's done well so far, but rather, who is well positioned to capture the future.

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warptek2010

This all began when they fired that "Dude, you're gett'in a Dell" Pothead guy. Get him back. Get him back before it's too late.

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tony2tonez

Its feels like Dell got caught up in the 'fad' generation. Just like Social Media, something new and different comes along and everyone jumps on. And then, the old thing that got them along so well, they just bad mouth and drop.

Just like Iphones and soon to be Galaxy's. People will get tired of them and having one like everyone else that they will drop them and business community/bloggers/tech sites will be writing of their demise, like they write of Dell.

Eventually all technology and social media fall victim to the 'cool' or 'fad' generation. We consumers after a while just want something to replace our addiction of something that feels old.

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Renegade Knight

Dell hasn't really given the emerging computing markets it's full attention. Tablets. Smart Phones etc.

Dell has been lackluster for a long time.

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tony2tonez

I agree it took them a while to get into those markets now they are playing catchup to the competition. They probably took a wait and see approach in that area and it has back fired on them.

I don't think they make inferior products. They were just late to the game and new companies came along and took their spot.

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nlncmp

+ 1

Dell maybe spread too thin - home, industry, government...

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2fools

Thinking this has more to do with Windows 8 and the board trying to prevent Mr. Dell from taking the company private

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ronmccord

I have been a good dell customer for 5 years now, I purchased the m14x dell xps which was the worst of the purchases my fault for not knowing what I was buying, M17x alienware, m18x Alienware, 30 inch monitor and Dell Latitude 14 inch. My favorite Dell products are if you need a gaming laptop Alienware, since I live overseas in S America it is the only company with support in house if something breaks. I will be moving back to civilization soon though and doubt I would buy An Alienware computer with so many more options. Really the latitude line is the only laptop line without allot of competition since they are semi rugged and affordable only Lenovo. I was close to buying a lenovo before the latitude but the 12 month free financing of Dell kept me in the family. Next year may be different will see ( one thing for sure Apple will never get my business since Trading and Gaming are not part of their ecostructure to name a few deficiencies.

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shommy2002

How are you a MaximumPC reader, yet you buy pre-built computers. You should be building your own PCs if you are PC enthusiast, which 99% of the readers here are. IDK, it just seems weird to me.

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PCWolf

Shommy, He's talking about Laptops. Not PC's. Can't build those yourself yet thanks to there being no almost Standards for them.

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jgottberg

Sounds like he's buying laptops mostly. Can't really build those yourself, easily :)

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jgottberg

I'm surprised their enterprise products aren't keeping them some-what profitable.

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wolfing

well, they are profitable. Profits dropped 79% but they're still profit

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ApathyCurve

Margins are too small in the PC assembly market and Dell's overhead is too large. They are faced with a simple decision: diversify or die.

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