Dell (DELL) Troubled By Slow Move To Retail, Lenovo

Consumer Electronics

Published: January 3, 2008 7:12 am

Dell (DELL) is trying to pick which products it wants to give to retailers like Best Buy (BBY) and Wal-Mart (WMT) and which it wants to sell on the internet. Maybe it thinks it can make more money that way, but it won’t

According to The Wall Street Journal "Best Buy began offering Dell’s desktop computers, its more expensive 14-inch Inspiron laptops, and its high-end XPS branded notebooks this week. But Best Buy isn’t offering Dell’s printers or its lower-end notebooks."

Rivals like Hewlett-Packard (HPQ), Acer, and even Apple (AAPL) are not being so selective. They just want to sell computers. Perhaps that is why Dell is losing market share in the US while most other manufacturers are gaining.

Dell also has to worry that the PCs being built by its competition are getting much better. Lenovo is introducing a slick new line of consumers machines that have the look and feel of a Mac.

Dell needs to get in gear.

Douglas A. McIntyre

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