The Channel logo

News

By | Andrew Orlowski 3rd November 2005 08:22

Algorithms no match for sales craft, Dell discovers

Axes flop CE division

Dell will dismantle its US standalone consumer electronics division after poor results. The unit sold standard living room fare such as TVs, as well as high-end media PCs.

The Wall Street Journal's Gary McWilliams reports that the Dell formula which has proved so successful for selling commodity PCs has been outgunned by traditional salesmanship on the shop floor.

Dell's success has come about by focusing on low-cost assembly and distribution. "Dell is a grocer store," is how Scott McNealy of Sun Microsystems described it. "And the only value you can add to a banana is a bruise".

But for consumer electronics goods low pricing has come up against traditional retail and been found wanting.

"Dell may have a price advantage over Sony and Samsung," says former Circuit City executive Michael Ryan in the WSJ piece, "but retailers have a wider variety of prices."

It's heartening to think that the pricing algorithms behind one of the most successful companies on the planet are no match for the classic, old-fashioned craft of salesmanship.®

alert Send corrections

Opinion

ARA_LIbertad

Chris Mellor

Elliott Management sinks its teeth into retiring godhead
Satya Nadella
cloud computing Fight

Tom Pappas

We all know hardware lasts longer than 3 years so why bin good kit?

Features

SAP Match Insights
Vorsprung durch grossendatatechnik, as we like to say in Germany
Inside the Google Lab where surgeons prepare the human/dog experiment
Big Blue exec tells El Reg what to keep an eye on
Windows 8.1 Update Start Screen
As good as it gets, for now
Is everything fatally borked? Not quite, say security godheads