Monday, June 22, 2009

OvertheCliff@dell.com

Sorry if you didn't get the title first time around... here is an explanation of sorts.

First quarter results have just been released and it's shaping up to be a worse season for Dell than the 1976 Tampa Bay NFL team had...

ChannelWeb led off with "Q1 PC Shipments Plummet 8.1 Percent As Dell Leads Plunge" which although reflective of Dells' Q1 it isn't entirely true... only Dell and Lenovo failed to post positive growth among the giants HP, Acer and Toshiba, Dell and Lenovo. Worldwide shipments were down, but it is only Dell and Lenovo who are taking the plunge over the cliff, the others are growing marketshare even in these most difficult of times.

I would judge this to be a small victory for consumers. Social networking means that when large corporations treat customers in such a cavalier manner, it quickly becomes common knowledge among the customer base, sales and reputation decline. At the end of the story that discontent becomes evident in the share price and the market share. I'm no stock analyst but I do have a bit of common sense and Round Rock seems to have pockets of town where common sense is AWOL, the fact these problems happened in the first place is shocking enough, that it is still going on four years after they first surfaced is an indictment.

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