Originally posted by: Viditor
Originally posted by: FelixDeKat
Dell is the best box maker on the planet. Period. They build stable, quality boxes based on Intel products that companies have relied on for 20+ years.
Dude, Dell rules!
Bwahahahahahahahahaha!!!!
Thanks Felix...best laugh I've had in YEARS!
I apologize. I should probably be more constructive than to just sneer...
Firstly, I am with the group that believes Michael Dell is one of the smartest businessmen in the last 10 years.
However, most people don't really understand his business very well...
Dell makes very little on the computers themselves. They sell the cheapest and nastiest components going for next to nothing (relatively speaking). What Dell DOES sell (and profits massively on) is service contracts!
For example, take the $450 Dimension 3000...the computer (including overhead, assembly, design, etc...) probably costs them about $420 to deliver = $30 profit
The default premium warranty package on that (4 years including on-site and phone support) is $257...Dell's amortized cost on the warranty is around $70-$100 total over 4 years = $157-$187 profit!
Since they have deals with so many suppliers for just in time delivery, they have next to no inventory costs (this also means that you will only rarely find any two identical Dell machines with identical parts in them...)
Also, it doesn't matter what the quality of the parts are, as Dell has contracted out all of the service anyway...