This morning, Dell preannounced ahead of their August 17th earnings. 2Q revenue will be ~$14 billion, with earnings 21 – 23 cents. The revenue is a little shy of estimates of $14.23 billion;
The real disaster was the earnings shortfall: 21 – 23 cents is way below analyst consensus of 32
cents. The stock was off as much as 15% this morning, breaking $20, trading as low as $19.05 (its 19.22 as I type this).
While I have been a critic of Dell of some time now, let me give them a little credit. Their new "Purely You / Build to order" commercial is probably the best marketing thing they have done in a while — much better than the idiotic Dell Dude.
If Dell wants to play in the consumer space, they must understand that people do not have an IT department at home. A friend once called Windows 95 the IT Department Full Employment Act; Dells were purchased cheaply by corporate CIO’s with a full staff to handle the inevitable issues. SOHO owners don’t have that luxury.
My advice for them: Do not look to customer service for incremental cost cutting; they need to restore their prior, late 90s, full-on level of customer service for which they were justly famous.
UPDATE: July 21, 2006 11:45am
Interesting thought . . .
Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data and lack of respect for scientific knowledge. Be sure to create straw men and argue against things I have neither said nor implied. If you could repeat previously discredited memes or steer the conversation into irrelevant, off topic discussions, it would be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.