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Taking bets
- Thread starter Desslok
- Start date
someone will buy em out and aquire their facilities.
helll i remember when they used to go buy gateway 2000 and their website was gw2k.com
why did they go under? poor managment and they didnt change w/ the trend in the computer industry. in the early and mid 90's during the real evolution of the internet, computers were changing faster then most people on here can change their sox (most people on here were prob still in diapers, lol) - and computers were not cheap.
as time went on though, they got cheaper, faster and more reliable. back in 1995 or so the pII233mmx was as fast as you got and you would pay between $1.50 and $2 per meg of ram... so a 64meg stick of pc100 ram could cost you $128.
now - most computers average lifespan in a home is 2-5 years w/ minor upgrades thru that time, and while most homes have more then one computer, they simply arn't buying them as often as they did even 5 years ago
what dell did was cut corners. their wharehousing system is amazing. they own HUGE wharehouses... and section them off w/ white painted lines on the floor. they then lease those area's out to the companies who produce the componants to their systems.... so say X brand company leases out 1/5 of the wharehouse and stores its hdd's there, and dell uses them exclusivly. thats 1/5 of the wharehouse space that dell is now not paying for, and prob making money on. in addition, dell doesnt have to insure or "own" the hdd's in that 1/5 of the building till they physiclly cross the white line on the wharehouse floor - thus keeping overhead low. they only cross that line when a system is being built.
this greatly reduces overhead - amoung other things. now its the responsibility and cost of the hdd manufactor to truck in the pallets of hdd's, unload and catagorize them... and get them ready for dell to buy
its almost like dell has a store w/in its wharehouse that it rents out to merchents to sell exclusivly to them... and they do this w/ nearly every componant in addition to hdd's. to keep prices down
the only mistake they made was moving their tool free 800 tech support to india - where most of the tech support people just didnt know english well enough or know computers well enough to help users w/ their problems - but it was an effort to keep costs down. most of dell's customer support is back in the us from what i heard though
helll i remember when they used to go buy gateway 2000 and their website was gw2k.com
why did they go under? poor managment and they didnt change w/ the trend in the computer industry. in the early and mid 90's during the real evolution of the internet, computers were changing faster then most people on here can change their sox (most people on here were prob still in diapers, lol) - and computers were not cheap.
as time went on though, they got cheaper, faster and more reliable. back in 1995 or so the pII233mmx was as fast as you got and you would pay between $1.50 and $2 per meg of ram... so a 64meg stick of pc100 ram could cost you $128.
now - most computers average lifespan in a home is 2-5 years w/ minor upgrades thru that time, and while most homes have more then one computer, they simply arn't buying them as often as they did even 5 years ago
what dell did was cut corners. their wharehousing system is amazing. they own HUGE wharehouses... and section them off w/ white painted lines on the floor. they then lease those area's out to the companies who produce the componants to their systems.... so say X brand company leases out 1/5 of the wharehouse and stores its hdd's there, and dell uses them exclusivly. thats 1/5 of the wharehouse space that dell is now not paying for, and prob making money on. in addition, dell doesnt have to insure or "own" the hdd's in that 1/5 of the building till they physiclly cross the white line on the wharehouse floor - thus keeping overhead low. they only cross that line when a system is being built.
this greatly reduces overhead - amoung other things. now its the responsibility and cost of the hdd manufactor to truck in the pallets of hdd's, unload and catagorize them... and get them ready for dell to buy
its almost like dell has a store w/in its wharehouse that it rents out to merchents to sell exclusivly to them... and they do this w/ nearly every componant in addition to hdd's. to keep prices down
the only mistake they made was moving their tool free 800 tech support to india - where most of the tech support people just didnt know english well enough or know computers well enough to help users w/ their problems - but it was an effort to keep costs down. most of dell's customer support is back in the us from what i heard though
That, and Dell uses prison labor to assemble PC's🙂
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