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

Privacy image

Frank Jennings

Two working parties, ministers galore... but data transfer law remains in limbo
EMC_Unity_bezel

Chris Evans

It does simplify the hardware setup, whatever it is
A microscopic view of the biometric shark skin. Pic: James Weaver

Chris Mellor

Do something and stop faffing about in the bush league

Kat Hall

International system in general needs greater transparency

Features

Nerd fail photo via Shutterstock
Shouting match
Single market vs. rest of the world
hacker
Mostly it's financial crime. Here's what all the cool kids' terms mean in English
Apple logo. Pic: Blake Patterson
Plenty of bumps in the 40-year road for Mac makers