What? Dell at Wal-Mart?

May 25, 2007

Yep, Dell is at Wal-Mart. Dell reported that it is planning to sell its computers at Wal-Mart soon to increase sales. Unfortunately, it’s not buy one get one free but it is at decent prices. The computers are going to be tagged at around $700 for a bundle. Dell plans to sell only 2 models of the dimension multimedia desktop computer in 3000 stores in the United States, Canada, and Puerto Rico. In addition, Dell will also launch a separate model in Canada which has around 284 stores. Also, Linux users should keep in mind that Dell has chosen Ubuntu 7.04 version for its Linux consumers.

What’s Dell selling, and why at retail stores?

As global competition increases in every sector of the market, Dell finally decided to step it up. After HP (Hewlett- Packard) took over the market by being the number 1 producer in computers, Dell began losing its market share. However, Acer, the third largest company, is also selling their computers at many large retail stores such CompUSA, Circuit City, and BestBuy. In the process of doing this, both Wal-mart and Dell have planned that this will increase both Wal-Mart’s sales and help Dell in capturing the market share. As seen from last year, Dell’s reported earnings fell nearly 33%. HP gained 11%.

What did Dell do before?

As seen before, Dell computers were only available through phone and online orders. This will give customers another choice in the computer market. It’s a good step in increasing its customer amount but also increasing revenues and competing with other companies.

Investing in Dell:
Dell can be a good investment yet a very risky one. The market has many competitors and Dell has just stepped up in the actual retail market rather than only the direct market. I’d wait awhile if I were going to invest in it. Maybe check out what else it’s coming out with.

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Posted in Business/Stocks