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HEXUS.beans :: DELL assaults the little guys

by Willy Deeplung on 14 August 2006, 12:04

Tags: Dell (NASDAQ:DELL)

Quick Link: HEXUS.net/qagkf

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HEXUS.beans :: DELL imminently set to announce top-to-bottom range of AMD processor based PCs


Whilst in Old Taipei back in June, HEXUS learnt a lot of secret stuff, and one of the more interesting beans we collected was that DELL had apparently been requesting its suppliers to submit, for technical evaluation, a broad range of mainboards supporting AMD processors.

This was apparently in preparation of it launching a top-to-bottom range of AMD processor based PCs.

Last Thursday we learnt that an announcement in this respect was “imminent”, and this morning we see that the International Business Times is now reporting something similar.

Both ASUSTeK and FOXCONN are believed to be key mainboard suppliers to DELL, but as most Intel processor based DELL PC’s use FOXCONN mainboards, our money is on the forthcoming range of DELL’s AMD based systems rolling out with FOXCONN mainboards too.

So perhaps FOXCONN’s ‘Project Tritium’ – its NVIDIA nForce5 mainboard for AMD AM2 processors developed jointly with NVIDIA – will be the mainboard DELL has chosen for its flagship AMD based system?

No matter, the first casualty of Dell’s introduction of a top-to-bottom range of AMD based PC’s is likely to be the business interests of second and third tier PC manufacturers such as Evesham and MESH Computers.

This because Dell can now effectively force a direct, or closer, hardware comparison with its little competitors, and in such a comparison Dell’s track record is that its pricing could well be unbeatable.

Our view is that home-grown PC manufacturers in the UK, can still compete, but such companies will need to start thinking somewhat smarter and, from a hardware perspective, provide customer centric solutions rather than garden variety commodity boxes.

Furthermore only those companies which maintain a high-visibility genuine commitment to after sales service, customer care and technical support are likely to nurture and retain and customer recommendations and brand loyalty.

We'd also argue that Dell's competitors need to play on their potential strengths, these being dynamism and speed to market, and in today's market this can only be achieved by an overwhelming marketing focus on the interweb.

PC manufacturers that still believe they could continue to develop their businesses by relying upon 'relationships' with magazine publishing houses, and to effectively have their products endorsed with award logos in exchange for massive amounts of advertising money, will simply fall by the wayside.

It’s starkly obvious that against a background of diminishing magazine sales, mainstream technology printed publications have had their day, and not only is the buying punter so much more technology aware these days (arguably more technology savvy than many of the very ‘authoritative techno hacks’ that try and punt advice) but discussion on the internet has exposed the manifest reality of many a PC companies claims of ‘high standards of customer commitment’…

In our view those PC companies which have already committed to putting their customer care and technical support in full view of the buying public should be trusted the most.

In the meantime HEXUS readers should consider themselves warned to look out for print publishing houses that will try and continue to swell their coffers, by introducing new or transitioning their existing titles to the web. …

Do leopards change their spots?... …

Check back on HEXUS for more on the DELL AMD PC thing as we get it.



HEXUS Forums :: 10 Comments

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I really don't see why they need to do this at this time time; with Core 2 architecture being everyone's favourite for desktop (and soon, laptops), what is the point of breaking their relationship with Intel? I could understand a good few months back when AMD seemed to be king, but this seems a bad choice now. :(
They're not breaking their relationship with intel, they're adding AMD based machines to the inventory.

All they've done is broaden the product range.
hexus
We'd also argue that Dell's competitors need to play on their potential strengths, these being dynamism and speed to market,
Dynamism, maybe. But you've got to be careful with speed to market when Dell often manage to start stockpiling parts before they're released in the mainstream.

hexus
In our view those PC companies which have already committed to putting their customer care and technical support in full view of the buying public should be trusted the most.
Hexus would say that though, wouldn't they? :p Dell support forums have been online for ages - I don't know if you need to be a dell owner to access them, but I must admit I've been very impressed with Dells support - though that was based on experiences now a few years old.

In my opinion what the competitors need to do is offer differentiation - the one thing Dells can never be, by definition, is unique. Offer the customer the chance to feel different, to feel that the system is tailored to their use, not a generic average user x100,000. But I've still yet to see that done well. How cool would it be to actually have honest, clear advice on what you do.. and more importantly, what you don't need for a system to do what you want it to do? :)

edit: no you don't need to own a dell to view their forums:

http://forums.us.dell.com/supportforums/
Stoo
They're not breaking their relationship with intel, they're adding AMD based machines to the inventory.

All they've done is broaden the product range.


Isn't that likely to damage their relationship with intel, resulting in higher prices for intel chips?
If it does, then Intel will be found in breach of anti-competitive laws and will get sued by AMD. Sort of like a certain current lawsuit that's in the works… :p