How does dell make money on a 250 dollar laptop?

[Scarpozzi]

Dell used to make a lot of money in that sector, but they're fighting for the scraps the same way everyone else is. A $249 laptop is direct competition for tablets and the more portable devices.

Power users will insist on paying another $200-600 to get something faster. People who wear turtlenecks will insist on paying another $1000 to buy apple.

 

[Dari]

My cousin just graduated hs so I think a laptop like this would be good for her as a graduation present. Anyone disagree?

 

[squarecut1]

My cousin just graduated hs so I think a laptop like this would be good for her as a graduation present. Anyone disagree?

For the majority of users a laptop like this is perfectly fine

 

[Dari]

For the majority of users a laptop like this is perfectly fine

Thanks. I only finished graduate school 5 years ago but that was before tablets completely took over the computing landscape. Is that something that would be useful for her as well or are books still in vogue?

 

[jpiniero]

Does Dell even do any design or manufacturing now? I was under the impression that they are simply a Foxconn reseller at this point.

 

[squarecut1]

Thanks. I only finished graduate school 5 years ago but that was before tablets completely took over the computing landscape. Is that something that would be useful for her as well or are books still in vogue?

If she graduated high school and going into college I would think a laptop would be more useful to her than a tablet. If she has graduated college then maybe you can get a 8 inch tablet for around the same price

 

[postmortemIA]

this is the free windows 8.1 with bing edition for devices costing less than 250.00. now you know why it is exactly 249.99

 

[JMapleton]

I don't believe that crap one bit. Is that why all those hand written notes from slave factory workers are ending up in hand bags and shit asking for the UN to do something?

The Chinese minimum wage is around $2/hour (depending on the region).

You see those notes because even in China, $2/hour is tough to get by on. Additionally, the working conditions are terrible. Even further, many employers break the labor laws and abuse workers to save money.

 

[KeithP]

Back in the old days, Dell didn't have to make money on the computer. You placed the order, Dell charged your credit card, then they took the components off the truck (Dell didn't own any inventory, so they just ok Intel CPUs of the Intel truck at the dock) and get a net30 bill from the supplier.

Then they would build your computer and ship it to you. They basically had thousands of customers giving them 30 day, no interest loans.

But Visa finally stoppe that.

They probably still (like many "retailers") make a lot of money off monthly financing.

I have been ordering Dell boxes for the company I work for since 1992. They have never charged a credit card before shipping. Not sure what you mean by "back in the old days" but I don't think your scenario ever happened.

As far as how they make money on cheap computers, they probably don't. What they have are a bunch of sales metrics that show most people don't buy just a computer. They add extended warranties, cables, printers, and all manner of other items that have much higher margins.

It is those extra items they want to sell and the cheap computer is their way to get those sales.

-KeithP

 

[Dari]

I don't believe that crap one bit. Is that why all those hand written notes from slave factory workers are ending up in hand bags and shit asking for the UN to do something?

Actually, you're both right. Coastal China is no longer cheap but inner China is still among the cheapest places on earth. Companies are moving into the interior.