Digital Journal — Dell is like the Dallas Mavericks playing in the NBA Finals: They enjoyed a burst of momentum in the beginning but lost focus when the competition got tough. The metaphorical Miami Heat can be HP or Apple, both of whom introduced laptops in the past five years that have garnered impressive sales. Dell has become the world’s largest PC maker but first quarter profit fell 18 per cent, to $762 million (US) from $934 million (US). Over the past 18 months, Dell’s stock lost close to 45 per cent of its value. What’s a market leader to do?
In an attempt to rebound from slumping sales, Dell has introduced a new generation of laser printers, desktop and notebook PCs and projectors. In a Toronto showroom, Dell Canada executives smile brightly as they extol the virtues of each device, often using hyperboles like “dream machine.” It feels like a pep rally mixed with hi-tech punditry. But as sceptical as a journalist wants to be, Dell’s new offerings could have the makings of a comeback worth watching.
At the showroom, the most impressive sight belongs to the Dimension XPS 700, a mammoth desktop PC featuring a glowing aluminum chassis resembling a front grille of a muscle car. The computer’s guts contain enough processor power to keep intense gamers happy, while also offering a 1.5 terabyte hard drive. By supporting NVIDIA Quad-SLI graphics and the latest Intel dual-core processor, the XPS 700, retailing for $3,800 (CAN), is undoubtedly the product of choice for high-octane gamers. Alienware, watch out.
Dell is also onto something with its Inspiron XPS M2010 notebook. This all-in-one PC boasts a 20-inch monitor, up to 200GB of hard drive memory, Duo processors and eight speakers and a subwoofer. It’s a hefty package complete with an ATI graphics card ideal for gamers, and it can be moved around the house — albeit infrequently. The unit weighs 18 lbs., heavy enough to strain a tendon or two if it’s being moved often. While the M2010 might not be completely portable, it has enough powerful guts to appeal to someone craving a media center and gaming platform in one unit. But the $3,800 (CAN) price tag could scare away potential consumers.
Dell is even trying to lure more market share with its new line of laser printers. “Imaging has always been a focus for Dell,” says John Tyler, product manager for software and peripherals for Dell Canada. Its 1110 laser printer trumps previous model with an increase in speed, now printing 17 pages per minute at 600 dpi. It starts at $127 (CAN) while a separate wireless adaptor goes for $129 (CAN).
Offering projectors ideal for both home theatre and boardroom settings, Dell is making a push into an already crowded segment. But as Dave Henderson, display product manager for Dell Canada, says: “With these new products, we can deliver the best features and connectivity options that our customers have asked for.” It’s all marketing jargon, of course, but the 5100MP projector might make some headway for the company. The uber-bright projector boasts 3,300 ANSI lumens and a 2,500:1 contrast ratio. At $3,500 (CAN), the unit isn’t the priciest projector on the market but it also isn’t the perfect gift for the budget conscious.
Dell might not be what it used to be, and its recipe for success may be old hat by now. But what sets the losers from the winners is changing with the times, whether in strategy or hardware.
It’s time for Dell to adapt to 2006’s crowded landscape, as newcomers like Lenovo enter the PC market. And by looking at Dell’s new product lineup, the company looks like they are not doing too poorly.
The specs appeal to tech-obsessed enthusiasts, and the form matches the function. The prices are reasonable, without veering sharply to either extreme. The only thing Dell can do now is wait to see if their customers appreciate the summer offerings.
