Dell’s Earnings Drop 63%

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The New York Times is reporting that Dell’s first quarter net income fell 63% to $290 million, down from net income of $784 million in the same period last year. Hit the link for the complete breakdown and analysis.

Like most of the major hardware makers, Dell, based in Round Rock, Tex., has suffered as businesses and consumers cut back on their technology spending during the global recession. Dell, in particular, depends on sales to business customers, which have been even more reluctant than consumers to buy new equipment.
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I was expecting that...have you seen the ridiculous deals they have been honoring?

Percentage based discounts (Promo codes) that apply to a greater variety of items than intended (or was it intentional? hmm...)
 
I switched to a Dell Precision T3500. Got it loaded for $690. Added an I7 920 and 12gig of ram and are set.

No OC'ing, but great for the price.
 
This is what they get for cutting Nvidia GPU's out of their systems. :rolleyes: :p. Relax, I'm sort of kidding, I know that's not what it's about.
 
The bigger news is that they beat projections, that is better for the stock.
 
Not to mention that I have been pulling my hair out trying to get my tax exemption status from Small Biz section for over two weeks now. Keep getting ping-ponged around. They are about to lose my business.
 
I keep on getting the 20% promo deal. Sorry, Dell, but 20% is not enough savings for me to buy your overpriced stuff. Try 50% or 75%, and we're talking.
 
At least they are posting EARNINGS, and not losses. So that only means the fat CEO's eat less lobster.
 
shansoft said:
or this is what they need to get their money back :p
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Yeah, or this. lol

Cyrilix said:
I keep on getting the 20% promo deal. Sorry, Dell, but 20% is not enough savings for me to buy your overpriced stuff. Try 50% or 75%, and we're talking.
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Damn, I wish I could build PC's for people. I might not "make a kill'n", but people would get good deals & I'd be doing something that's fun sometimes. 1 rule to start off: no relatives or free-loaders. :cool:
 
what happens when you off shore jobs, people can buy when they lost their jobs to china, india, costa rica, mexico etc. government needs to pass that pass to tax us base companys 30% on anything that is off shored to support US customers.
 
Cyrilix said:
I keep on getting the 20% promo deal. Sorry, Dell, but 20% is not enough savings for me to buy your overpriced stuff. Try 50% or 75%, and we're talking.
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I don't know where you get your parts, but I would like to see where you can build a machine w/os and monitor for the same price that you can buy a dell. Sure, there are models (XPS..) that are overpriced, but take a look through the SMB section and you won't be able to compete.
 
ir0nw0lf said:
Not to mention that I have been pulling my hair out trying to get my tax exemption status from Small Biz section for over two weeks now. Keep getting ping-ponged around. They are about to lose my business.
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That was a PITA for me, too. I still fight it once in a while whenever I buy from a different sector (outlet, enterprise, home, etc). As much of a pain as it is, HP seems to be 10x worse. I will stick with Dell.
 
joblo37pam said:
I don't know where you get your parts, but I would like to see where you can build a machine w/os and monitor for the same price that you can buy a dell. Sure, there are models (XPS..) that are overpriced, but take a look through the SMB section and you won't be able to compete.
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Did you take a look at their laptops? $1500, and it has a shitty graphics card in it. No thanks, I HAVE seen better than that.
 
Good, maybe ram upgrade wont be $300 for 4G of ram, yet on the same system in another section is only $140 (wait, wasnt dell charged for this crap before...)

Either way, maybe some of their prices will get alot better and crap.
 
MrGuvernment said:
Good, maybe ram upgrade wont be $300 for 4G of ram, yet on the same system in another section is only $140 (wait, wasnt dell charged for this crap before...)

Either way, maybe some of their prices will get alot better and crap.
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Um, I think hacking away at their already razor thin profit margins is what's killing them...

If they focused on making a better product and having better customer service (remember when it used to be good for people other than businesses?), maybe they'd sell a few more machines and people could justify the price. As it stands, they offer nothing but substandard notebooks and mediocre desktops for being the WalMart of the PC world.
 
The thing with Dell is you get what you pay for,no more. What looks like a great deal isn't really when you look inside and start adding up what the components they use are really worth.Add in the lousy customer service and you're much better off buying from a good boutique builder.
 
michael.pa2 said:
The thing with Dell is you get what you pay for,no more. What looks like a great deal isn't really when you look inside and start adding up what the components they use are really worth.Add in the lousy customer service and you're much better off buying from a good boutique builder.
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Or just self-build.. After the absolute piece of shit Gateway I got in 2000, followed by a friend's extremely bad Dell experience around the same time, I've gone the self-build route. I've had 3 kickass computers in a row now. :D
 
So they're still making money? That's pretty impressive since everyone else seems to be losing money hand over fist in this recession.
 
UrielDagda said:
Or just self-build.. After the absolute piece of shit Gateway I got in 2000, followed by a friend's extremely bad Dell experience around the same time, I've gone the self-build route. I've had 3 kickass computers in a row now. :D
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For enthusiasts like us, yes building is better (and funner!), but for budget rigs, you can't really beat Dell.
 
Maybe if they didnt piss people off by farming out all of their tech support and customer service to countries where we cant even understand what they are saying on the phone they would have sold more computers. :eek:
 
michael.pa2 said:
The thing with Dell is you get what you pay for,no more. What looks like a great deal isn't really when you look inside and start adding up what the components they use are really worth.Add in the lousy customer service and you're much better off buying from a good boutique builder.
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I would not agree, especially in the server arena and notebook areas of business.
 
Cyrilix said:
Did you take a look at their laptops? $1500, and it has a shitty graphics card in it. No thanks, I HAVE seen better than that.
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What are you looking at? I am typing this on an E6400 w/ c2d 2.26G, 4gbRAM, 250GB HD, Quadro Graphics, Vista Ultimate 64, 3yr warranty. I got it for $700. That was a hell of a promotion, but not uncommon. I can't remember a single time I have paid over $1000 for any laptop from them, and I have purchased ~50 in the last year.

You won't find that from ANYBODY else. Other than the XPS systems and some of the studio machines which have a very specific target market, Dell's systems are the best values out there.

Sure they make some cheap crap to sell at Walmart, etc. I wouldn't judge an entire company for trying to reach all ends of the market.
 
solaris54 said:
Maybe if they didnt piss people off by farming out all of their tech support and customer service to countries where we cant even understand what they are saying on the phone they would have sold more computers. :eek:
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not sure how people's nationalities relates to whether or not a computer is "solid"... also funny how they were one of the last computer companies to outsource (following HP and others)....you may want to re-think your statement. p.s., they do offer support in the U.S. for an additional cost if you want to pay for it...of which I'm sure most people don't buy, but it is still an option. I've had a Dell and an Apple for about 2 years, love both systems. Guess I'm one of the "few" to not have issues.
 
Dell needs businesses to buy computers. Businesses don't have money to buy computers. Dell doesn't make money. It's pretty simple.
 
The way I see it, the PC and laptop market is achieving product saturation...think about it. Most people aren't gamers and don't run high-end PCs or laptops; there's no need. Consequently, most people are finding that their old rugged and reliable computers are still meeting their needs, and in a tough economy, why replace something that's working for you?

I've got an old Dell Latitude D600 32-bit laptop, which was originally furnished to me by my employer. Since then, I've max'ed the memory, and upped the hard drive (also will need a new battery soon.). I use it only when traveling to check my email, surf the web, and watch movies...I'll never need a laptop for anything else. (I COULD easily afford a top-of-the-line laptop, but why bother?) I can't say that it's a GREAT laptop, but it was free to me, except for the parts I needed to upgrade/repair. It does the job, so from my POV, Dell made a real winner.

For me to replace my laptop, it's going to have to get destroyed, or, some part goes out which can't be easily replaced/repaired, cost-benefit-wise. (I build and repair everything myself, after 30 years in the computer field, so, as well, a laptop will be the only assembled PC I'll buy.)

I anticipate that I will replace it when the screen goes out. I hate replacing them, and, by then, the replacement screens should be hard to find, and consequently, expensive, too. Also, it's quite likely that, by then, oLED laptops will be available and reasonable, and should last much longer. ("Going Green" has nothing to do with it. Laptops sip electricity, so, virtually, there's no diff or gain there, either.)

If I'm not going to fix something that ain't broke, then nobody gets my money but me. Regardless of the economy, saturation is the main reason all hardware companies are posting lower earnings.
 
Cyrilix said:
Did you take a look at their laptops? $1500, and it has a shitty graphics card in it. No thanks, I HAVE seen better than that.
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What are you looking at, the XPS line? My aunt just bought a 15" Studio that was freaking loaded for $650.
 
Ockie said:
I would not agree, especially in the server arena and notebook areas of business.
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That's the thing though, while their business support is still good, their consumer support went down the toilet years ago.
 
I'd disagree. I bought a laptop about 1.5 years ago that had a mobo failure within a few days after I got it. The short of it, it had been sent back, fixed, and back on my desk within 3 business days (called wed night, got return box thurs, got the machine back on mon). It's worked great since then.
 
Palliser said:
not sure how people's nationalities relates to whether or not a computer is "solid"... also funny how they were one of the last computer companies to outsource (following HP and others)....you may want to re-think your statement. p.s., they do offer support in the U.S. for an additional cost if you want to pay for it...of which I'm sure most people don't buy, but it is still an option. I've had a Dell and an Apple for about 2 years, love both systems. Guess I'm one of the "few" to not have issues.
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I didnt say anything about people's nationalities or anything about a computer being "solid" and I stand by what I said.
I dont care what nationality customer service or tech support is but if there is a language barrier and they have a hard time understanding what I am saying and I have a hard time understanding what they are saying then it takes twice as long on the phone for me to get anything done. Customers knowing this will have 2nd thoughts about buying Dell computers and this will affect computer sales.

I bought my 1st Dell computer in around 1999 when the Dell customer service and tech support was excellent mainly because it was handled here in the United States. Over the years I have bought Dell computers but each year the customer service/tech support has gotten worse mainly because it has been farmed out to other countries. Now I dont buy Dell computers mainly because I have found out that it makes more sense to build my own. Now I am my own Customer Service and Tech Support:D
 
solaris54 said:
I didnt say anything about people's nationalities or anything about a computer being "solid" and I stand by what I said.
I dont care what nationality customer service or tech support is but if there is a language barrier and they have a hard time understanding what I am saying and I have a hard time understanding what they are saying then it takes twice as long on the phone for me to get anything done. Customers knowing this will have 2nd thoughts about buying Dell computers and this will affect computer sales.

I bought my 1st Dell computer in around 1999 when the Dell customer service and tech support was excellent mainly because it was handled here in the United States. Over the years I have bought Dell computers but each year the customer service/tech support has gotten worse mainly because it has been farmed out to other countries. Now I dont buy Dell computers mainly because I have found out that it makes more sense to build my own. Now I am my own Customer Service and Tech Support:D
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I do stand corrected as I mis-read your initial statement about them being "solid", my apologies. However, I will say that unless you are building your own system, nearly every computer company out there has outsourced a portion of its business. I used to build my own systems, but buy with large companies in case something happens to my system...this way I can call someone and have a part fixed/replaced. I guess what I'm saying is not buying from a "specific" company because they outsource makes no sense because there aren't any other options these days (other than building yourself). Just food for thought at this point.
 
Palliser said:
I do stand corrected as I mis-read your initial statement about them being "solid", my apologies. However, I will say that unless you are building your own system, nearly every computer company out there has outsourced a portion of its business. I used to build my own systems, but buy with large companies in case something happens to my system...this way I can call someone and have a part fixed/replaced. I guess what I'm saying is not buying from a "specific" company because they outsource makes no sense because there aren't any other options these days (other than building yourself). Just food for thought at this point.
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Well when you build your own system and buy as an example an EVGA motherboard it has a Lifetime Warranty plus American tech support. It is fairly easy just to call and RMA the board. You just have to be careful of which companies you buy from.
 
Palliser said:
not sure how people's nationalities relates to whether or not a computer is "solid"... also funny how they were one of the last computer companies to outsource (following HP and others)....you may want to re-think your statement. p.s., they do offer support in the U.S. for an additional cost if you want to pay for it...of which I'm sure most people don't buy, but it is still an option. I've had a Dell and an Apple for about 2 years, love both systems. Guess I'm one of the "few" to not have issues.
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you shouldnt have to pay extra for support in the us. thats just bs. i agree with there laptops.......lots of other companies are offering better graphics cards with there laptops and at a lower price then dell. thats last time i check dell website and that was recent.
 
knothead34 said:
you shouldnt have to pay extra for support in the us. thats just bs. i agree with there laptops.......lots of other companies are offering better graphics cards with there laptops and at a lower price then dell. thats last time i check dell website and that was recent.
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Why not? The company has to pay more to 'give' it to you. You either pay more to have USsupport, or pay more for the machine up front and the US support is included. Either way, it's going to be more expensive.
 
UrielDagda said:
Or just self-build.. After the absolute piece of shit Gateway I got in 2000, followed by a friend's extremely bad Dell experience around the same time, I've gone the self-build route. I've had 3 kickass computers in a row now. :D
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The only thing I'd buy from Dell is a laptop, and I really have no desire to DIY a laptop.
 
joblo37pam said:
What are you looking at? I am typing this on an E6400 w/ c2d 2.26G, 4gbRAM, 250GB HD, Quadro Graphics, Vista Ultimate 64, 3yr warranty. I got it for $700. That was a hell of a promotion, but not uncommon. I can't remember a single time I have paid over $1000 for any laptop from them, and I have purchased ~50 in the last year.

You won't find that from ANYBODY else. Other than the XPS systems and some of the studio machines which have a very specific target market, Dell's systems are the best values out there.

Sure they make some cheap crap to sell at Walmart, etc. I wouldn't judge an entire company for trying to reach all ends of the market.
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They have a $1500 "gaming-oriented" laptop which after the promotion comes down to about $1200, and its specs don't look good enough to justify its price.

BTW, I'm in Canada.
 
joblo37pam said:
Why not? The company has to pay more to 'give' it to you. You either pay more to have USsupport, or pay more for the machine up front and the US support is included. Either way, it's going to be more expensive.
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Negative. So the extra money you spend on the warranties with Dell are not enough?
 
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