I thought of this weeks ago and could not escape the idea, so I would like to know what people think of it. The Dell forum would be a better fit, but I think fewer people peruse that one than this one.
Assumptions;
1. Other vendors have better offerings than Dell's in the low-end, low-performance consumer sector. (e.g. Inspiron v. Acer Aspire, HP Pavilion and Lenovo Ideapads)
2. Consumers who buy those laptops buy based on cost, and Dell doesn't usually sell the cheapest laptops.
3. Other vendors have better or similar offerings in the premium, low-performance consumer sector. (e.g. Dell XPS vs. Apple, Asus and Samsung Ultrabooks)
4. Cutting loose XPS and Inspiron would decrease Dell's operating cost by a large amount. I think this is reasonable: fewer parts used, fewer service calls, fewer costs cut.
5. Demand for (only) enterprise and high-performance computers remains constant.
6. Dell's offerings in the enterprise and high-performance sectors are some of the best.
Because Dell has fewer competitors in the enterprise and high-performance sectors and its offerings are some of the best, why not focus on those? It would decrease Dell's profit, but it would also decrease operating cost, giving Dell more leeway to use higher-quality parts, innovate, and best its competitors. Buyers in those markets focus on quality rather than cost, and Dell can charge high prices if it offers the best products and the best customer service.
Thoughts?
Note: Since Dell will not need to subsidize losses taken in other sectors if they implement this, I imagine that Alienwares and Precisions will get a little cheaper.
Assumptions;
1. Other vendors have better offerings than Dell's in the low-end, low-performance consumer sector. (e.g. Inspiron v. Acer Aspire, HP Pavilion and Lenovo Ideapads)
2. Consumers who buy those laptops buy based on cost, and Dell doesn't usually sell the cheapest laptops.
3. Other vendors have better or similar offerings in the premium, low-performance consumer sector. (e.g. Dell XPS vs. Apple, Asus and Samsung Ultrabooks)
4. Cutting loose XPS and Inspiron would decrease Dell's operating cost by a large amount. I think this is reasonable: fewer parts used, fewer service calls, fewer costs cut.
5. Demand for (only) enterprise and high-performance computers remains constant.
6. Dell's offerings in the enterprise and high-performance sectors are some of the best.
Because Dell has fewer competitors in the enterprise and high-performance sectors and its offerings are some of the best, why not focus on those? It would decrease Dell's profit, but it would also decrease operating cost, giving Dell more leeway to use higher-quality parts, innovate, and best its competitors. Buyers in those markets focus on quality rather than cost, and Dell can charge high prices if it offers the best products and the best customer service.
Thoughts?
Note: Since Dell will not need to subsidize losses taken in other sectors if they implement this, I imagine that Alienwares and Precisions will get a little cheaper.