Filed Under (Technology News) by gadgetHead on May-25-2007

Dell-logoFor the first time in it’s twenty three years, Dell is trying to find sales through avenues other than the direct-to-customer model. Dell and Wal-Mart have agreed to offer two Dimension desktop models through Wal-Mart’s 3,000 North American stores. Rather than a one-time limited experiment, Dell says it plans expand further into the retail market in the future. Given Dell’s decreasing shipments over the past couple of years, the push into retail seems almost inevitable. However, the question is whether Dell can succeed where other direct-to-customer companies who explored retail failed. Remember Apple and Gateway’s retail experience? Dell’s strength has always been the customization options it offers customers. By going retail with fixed spec computers Dell has to compete on the price point. That may prove a tough task, though, since Wal-Mart sells several low price computer brands through it’s outlets and Dell will have to find its place among them. Don’t be surprised if in a couple of years Dell retreats from retail with its tail between its legs.


1 Comment posted on "Dell Strikes Deal with Wal-Mart"

techfan on May 25th, 2007 at 3:19 am #

I agree with the poster – I really don’t think this is a safe move for Dell. How can they compete with emachines or other ‘generic’ brands in wal-mart. HP also sells computers in wal-mart – if they want to squeeze Dell out, they can.

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