Dell to Sell Computers at Wal-Mart

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Dell to Sell Computers at Wal-Mart
http://hosted.ap.org/dynamic/stories/D/DELL_WAL_MART?SITE=VABRM for rest of story
By PETER SVENSSON
AP Technology Write

NEW YORK (AP) -- In a departure from the direct-to-consumer business model it was founded on, Dell Inc. plans to sell computers at Wal-Mart Stores Inc., the world's largest retailer.

A Dell spokesman said Thursday the computer maker will begin selling two models from its Dimension desktop computer line in about 3,000 Wal-Marts beginning June 10.

Dell spokesman Dwayne Cox said the Wal-Mart deal "represents our first step" into global retail.

"Customers want more and new ways to buy our products, and we plan on meeting their needs on a global level," Cox said. "Offering Dell Dimensions in Wal-Mart is a great example of this approach."

Cox said Dell will announce additional moves into retail in the coming quarters, but he declined to give specifics.

The two Dimension E521 models will be sold at Wal-Marts in the United States, Canada and Puerto Rico. Dell said it could not reveal specific prices yet. On its Web site, the cheapest Dimension E521 costs $359.

Since its founding in the 1980s, Dell has relied on selling PCs and other products directly to consumers and business customers over the phone and Internet. It viewed direct sales as an important cost advantage over competitors who sold computers through retailers.
 
At least saving money on your Dell might make it easier to deal with the Indian people you can't understand when you call their tech support line. :rolleyes:
 
And so we see the beginning of the end for Dell. WalMart will constantly be pushing for cheaper and cheaper prices to undercut their competition which will eat into Dell's profit margins. Also, they will see their online sales begin to suffer as they won't be able to compete with the WalMart prices.
They're going to be Vlasic'd. Or is it Huffy'd? What a shame.
 
And so we see the beginning of the end for Dell. WalMart will constantly be pushing for cheaper and cheaper prices to undercut their competition which will eat into Dell's profit margins. Also, they will see their online sales begin to suffer as they won't be able to compete with the WalMart prices.
They're going to be Vlasic'd. Or is it Huffy'd? What a shame.

Walmart wants to go upscale and change the type of people who shop at their stores.
 
Well we now now that John Edwards won't be buying a Dell any time soon. What a shame and here in a state that he used to represent, they have one of the most highly technical plants in the world. :rolleyes:
 
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