Wal-Mart to start selling Dell PCs June 10

Wal-Mart to start selling Dell PCs June 10

Summary: Update: A few updates to the prior post, including a hard date. Dell confirmed the Wal-Mart deal to News.

TOPICS: Dell, Hardware

Update: A few updates to the prior post, including a hard date. Dell confirmed the Wal-Mart deal to News.com and Reuters. News.com is reporting that Wal-Mart will begin selling Dell desktops this weekend June 10 priced in a bundle below $700.

Quoting analyst Samir Bhavnani, research director at Current Analysis West, Steven Musil writes that Wal-Mart will sell the Dimension E521 at more than 3,000 retail locations in the U.S.

In the post, Bhavnani says:

"Finally, Dell has addressed one of its main problems by giving customers a chance to touch and feel its products. Dell's going to be touching a lot of people who weren't necessarily looking to buy a PC."

This is one more item to consider in the increasing retailing drumbeat surrounding Dell. As reported yesterday, Dell's move to retail is just a matter of when not if.

If Dell's weekend at Wal-Mart is true it's a launch that seems awfully quiet. Why would you launch a retail effort over Memorial Day weekend and not tell anyone about it?

Topics: Dell, Hardware

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  • Awwwww, Dell and Wal-mart....

    like two peas in a pod, how cute!
    Kid Icarus-21097050858087920245213802267493
    • Well unlike

      certain utopian idealists and their $100 laptops, Wal-mart and Dell actually provide
      computers at prices less than a typical television. The only people offended by that
      are marxists.
      • And those of us that do not

        want to deal with Wal-Mart
        • Your problem, not ours.

          Personally, I believe that this is a good move by Dell, and can only help them regain the #1 spot . . .
  • Wal-Mart, Dell & China

    A marriage made in Heaven, now you can shop at China-Mart, buy your China made Dell pc and other 'Made in China' products.

    Wal-Mart & Google need to join hands, that way they can dictate when to shop, how to shop, what to buy and dictate your health care needs.

    WOW I am ready to live in a Gulag Communist Camp!!!
    Linux User 1
    • Avoid Linux; you can't tell where it's been.

      Anyone might work on it; China has been considering a version of its own, but that doesn't mean contributions to other distributions won't happen.
      Even leaving China aside, people in some countries with terrible governments are hoping to establish their bona fides in order to obtain a job and thus escape.
      Other people work on Linux code by compulsion of their employers.
      Much Linux code is the result of tyranny or exploitation or despair.

      If you want an operating system made by free people working proudly, remain with Microsoft.
      Anton Philidor
      • 8.0

        8.0, Anton...
      • Whaaa?

        What the heck does your reply have to do with the subject at hand...Wal-Mart and Dell? Stop using any forum you jump into to spew your personal vindictiveness. People like you are ruining the usefulness of these message boards.
      • Does this include the Slave labor markets where they . . .

        press all those 'American' Vista disks?

        Pretty funny post, Anton. You might even make it to Mr. Cox's level if you keep it up.

    • "and dictate your health care needs. . . ."

      Actually, that would be the Democrat party . . .

      If you don't want to shop at Wally-World, then don't. But please spare us another irrational diatribe, we have better thing to do than listen to some 'Holier than thou' neo-marxist liberal whose idea of Capitalism is to have everything made in the US, which would raise the price of most goods beyond most people's ability to afford them . . .

      And their Jeans are made in Mexico, not China.

      Should I add Racist to my labels of you, too? You don't seem to like the Chinese very much . . .
      • Politically correct non-sense

        What is wrong with America, someone states an OPINION and all of a sudden oh my heavens you said something that was 'politically incorrect'...

        The brainwashed masses of this country show how naive and stupid people are. Do you believe everything on the news, what about someone who tells you off-shoring jobs is helping the economy by record foreclosures and unemployment.

        Sorry I have freedom of speech and if someone is offended by an OPINION then you have a problem NOT I.

        Good grief - Politically Incorrect Wars 2007 - continuance
        Linux User 1
  • Wal-Mart and Dell

    It's rather well known that Wal-Mart's heavy-handed pricing strategy forces it suppliers to sell their products to Wal-Mart at prices so low that quality greatly suffers. That's why I won't buy any expensive (well...relatively expensive) item there since I'll probably have to return it for a replacement or refund if and when it breaks.

    Dell's falling into a trap with Wal-Mart as a distribution channel. They'll be forced to continue to sell to WM at ever-decreasing prices and will therefore have to cut too many corners...resulting in low(er) quality machines getting into dissatisfied customers' hands. Furthermore, to not cannibalize their online sales, they'll have to decrease their online direct prices to at least come very close to the WM levels for their entry-level computers. Entry-level computers ($700 or below) are the hottest-selling desktop computers in retail (whether brick-and-mortar, online only, or click-and-mortar) at the moment. In effect, Dell is practically giving up on its low-end computers as a revenue source.

    Maybe that's a good thing. The profit margin is marginally (sorry about that) higher in the more expensive computers and Dell may wish to focus more on those. The manufacture of entry-level computers will just be on autopilot as they're fed to Wal-Mart for the masses. But they'll have to make sure that they don't actually lose money on every one of them as WM squeezes them more and more and as the repair and refund costs stack up. Perhaps Dell will implement a Wal-Mart-only line of cheap, disposable desktop computers, but I have a bad feeling that partnering with WM will cause the entire Dell consumer PC line to suffer in quality. Too bad. Bad move, Dell.
    • The terms will be tough

      I believe that Dell will provide stock machines to Wal-
      Mart - there has been too little time for them to come
      out with a WM only range.

      The problem is that WM is going to put down some
      tough terms. Invoice terms will probably be different
      than Dell has seen before. WM will also want some of
      the revenues from extended warranties that are sold.
      Worst will be demands for credits on existing inventory
      every time there is a price drop. They will also, in all
      probability, loose out on all the upgrade options that
      they make most of their money off of.

      Dell's hope is that the 3,000 outlets immediately
      available will cause a bump in sales. They don't have to
      fight for prime space at places like BestBuy, but they
      don't get the in-store service that these retailers offer.

      The WM deal may be interesting, but I give it less than 2
    • Not losing money . . .

      That's what all the Crapware is for! DOn't you know that? Dell could probably GIVE them to Wally-World for $100 or so and still make a profit on them . . .
      • Yeah, but...

        Who's actually going to snag that money? I'll bet it won't be Dell. Wal-Mart is far too good and greedy to let a revenue stream slip through their hands.