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Has Dell’s business model hit the wall?
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On page 5 of this weeks CRN print Magazine, you will find a picture of Michael Dell gracing the cover. In large print, the cover reads DELL HITS THE WALL. Below, it asks: "Does Dell's warning to Wall Street last week expose chinks in the armor of the direct giant's business model?"
Then the article reads: "That’s what solution providers gleaned from Dell’s unexpected warning to Wall Street last week. The Round Rock, Texas-based computer maker warned that its upcoming earnings report would show revenue of about $13.9 billion for its fiscal third quarter, down from the range of $14.1 billion to $14.5 billion it had previously forecast."
“Dell’s formula isn’t working any longer,” said Jay Tipton, vice president of Technology Specialists, a Fort Wayne, Ind.-based solution provider. Tipton and other solution providers noted that Dell’s direct-equals-low-price gambit no longer works with customers hungry for solutions and local service.
[Ed; So what do I read out of this? Payback. -tadelste]
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Nov 9, 2005 9:09 AM |
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