Once upon a time Dell was the darling of the computer industry. It was #1 in sales and its technical support was rated #1 as well. But times changed and slowly the company lost market share to HP and others. When its technical support went to India, consumer complaints were loud and clear. So several years ago Michael Dell took back over the company and it looked like Dell would recover. But unfortunately it appears the company is still struggling, trying to stop its slide in ranking.
One news article states that:
Investors punished computer maker Dell Inc. last Friday, sending its shares down almost 10 percent, as the company’s third-quarter earnings, revenues, and results came in below expectations.
The world’s No. 3 computer maker also lost market share to its rivals, a disappointing sign to analysts that it may be losing ground to its competitors as the computer and IT market shows signs of a rebound. The company lost market share to Hewlett-Packard Co., Acer Inc., and Apple Inc.
Consumers have resumed buying computers over the last few months, spurred by back-to-school sales, a recovering economy, and the upcoming holiday shopping season. But consumers have largely avoided Dell, instead snapping up HP laptops, Acer netbooks, and Apple computers—a trend that some analysts attribute to Dell’s staid and sometimes-uninspiring products.
The pricing of Dell systems appears to be competitive with other companies, so price doesn’t seem to be an issue. I believe that the reason for Dell’s decline is in consumer confidence. Dell is kind of like the American car companies that may have lost sight of what makes any consumer loyal to a brand. Beside price is the quality of the product and the technical support one receives.
In an age where most everyone is on the Internet, rumors, complaints and consumer reviews are flashed around the world in an instant. So when consumers complained about Dell, the world listened and may still be listening.
What do you think?