Half as good, at the same old price
By Nathan Green August 14th, 2006Looks like Dell is not quite putting its money where its mouth is as it embraces its price war with main competitors HP and Lenovo.
To its credit, it is taking its effort to cut costs seriously. Problem is, it seems it forgot to tell its Chinese customers. . . . . and also forgot to pass on the savings.
Whoops, what price in bad PR a US$32 saving on a cheap as chips processor.
August 14th, 2006 at 8:28 pm
mucha do about nothing
August 17th, 2006 at 9:35 pm
how do u spin this my friend.. if dell so ^**(&( up in china why is lenovo taking it’s top china man???
“8:56AM Dell: David Miller joins Lenovo as President of Asia Pacific (DELL) 22.73 +0.65 : Lenovo (LNVGY.OB) announces David Miller is joining the co as president of Asia Pacific and senior vice president of the co, effective immediately. Mr. Miller most recently served as president of Dell China.”
August 18th, 2006 at 8:50 am
Roger-
Sounds like that one spins itself. Dell is falling off the horse and their top man knows it. So he jumps ship and goes over to the market leader, Lenovo. It’s not the president’s job to make sure the ads are in line with the product. Notice Lenovo didn’t pick up Dell’s China marketing manager.
August 18th, 2006 at 9:23 am
I dont spin it that way my friend. Lenova trying to be like Dell and how better to do that than to take Dell’s employees.. DUh.. Dell a long way from off the horse.. u buy any lenova stock?? why not? dont like donating cash??
August 18th, 2006 at 10:07 am
Roger -
Sounds to me like Dell’s China operations are blowing up as fast as their computers. And Japan may soon follow, if anything can be taken from the defection of Dell’s former corporate director for Japan home and business sales, Sotaro Amano, to Lenovo to become Japan president.
But still no word on Lenovo chasing down Dell’s marketing manager.
August 18th, 2006 at 9:31 pm
Dude– the connection with the recent hire is Lenova’s president is from Dell..
as far as blowing up in china or japan for that matter i dont think so.. assuming there a pick up in corporate spending in 07, dell in next couple of days a good buy for a noce move next year.. get ahead of wave.. as far as u guys, wishing upon a star that lenova holds up chinese pride and wins in teh corporate war, i dont operate on wishes..in th e end it about making money… and ill be scaling into dell over next few months– restatement issue looming currently so wont load iup today. as far as u, i havent heard whether or not u own or are buying lenova stock??? u buy yet?? go ahead and donate?? come on
August 22nd, 2006 at 6:17 pm
Ha ha,
I’ll talk to my broker tomorrow. But seriously, I am still a skeptic when it comes to Lenovo and I won’t be pouring my money into the company any time soon.
I’m still not convinced lenovo’s brand buying shortcut strategy is the path to success, as argued in some detail in May’s cover story on brands in China.
Ultimately, Lenovo bought into a poorly run company on the way down, with all the brand baggage and legacy costs that entailed. In a double whammy, they also have to overcome negative perceptions of Chinese manufactured goods.
The company has shown a refreshing desire to shed the IBM label and build its own. And by posting a profit last quarter and increasing market share despite being in the middle of restructuring, the company has surely gone some way towards placating other skeptics like me.
But you are right that a couple of hires and a competitor’s self-destructing battery packs do not warrant a stock pick, but no one ever said it did.
I certainly am not buying yet, nor am I plugging Lenovo stock to others.
August 25th, 2006 at 1:54 pm
[...] Looks like there has been another defection to Lenovo from Dell’s Asia operations, making it the fifth such high profile defection in eight months. Coming on top of Dell’s exploding China batteries fiasco and an embarrassing lawsuit over false advertising, things are clearly not going right for Dell. [...]