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Aug 28, 08 - 04:19 pm Comment from: Fred Mertz

Shut it down and give the money back to the shareholders!

Aug 28, 08 - 04:20 pm Comment from: Journo

SIDAGTMBTTS!

(Shut It Down and Give the Money Back to the Shareholders!)

Aug 28, 08 - 04:21 pm Comment from: Predrag

Right on cue, Mr. Mertz!

Isn't Dell expecting a profit soon from its newest division, Psystar?

Aug 28, 08 - 04:25 pm Comment from: Judge Bork

I concur:

Shut it down and give the money back to the shareholders!

You ladies can gloat, chortle and be all smug-like but Dell's being down 10 percent in after hours is going to drag the entire Nasdaq tomorrow and AAPL with it, too. Down under 170, I predict.

Aug 28, 08 - 04:27 pm Comment from: kirkgray

So so sad.

Aug 28, 08 - 04:29 pm Comment from: The Dude

Where is the asshole claiming "Apple Tax" at now? It is called profit. When you have a great product, people will pay for it because IT IS WORTH IT! Paying little, and getting shit is just wasting money. Buy a quality product, and you will have to pay for it, and be happy. Buy shit, pay less for it... put up with crap. This is the exact reason I did not buy another Chevy again.

The Dude abides.

Aug 28, 08 - 04:34 pm Comment from: Arnold Ziffel

@Ms. Dell,

Even if AAPL drops below $170, which I doubt will happen, big chicken fried deal!

Michael Dell is the poster boy for mediocrity.

Mr. Dell,

Thanks for the buying opportunity. For AAPL, that is. Only a fool would invest in a dying PC box assembler that can't run Mac OS X.

What would I do? I'd shut it down and give the money back to the shareholders, you brillo-haired, cross-eyed, globe-headed fuck.

We'll make it up in volume. Or not.

SIDAGTMBTTS!

Aug 28, 08 - 04:43 pm Comment from: ron

Ding dong Dell, things aren't going well.

Oh, shit - that photo of Dell, the headline, and this:

It's here. The beleaguered Dell, Inc. Twice the work. Half the profit. (Zing!)

Laughing my ass off right now!!!

Aug 28, 08 - 04:54 pm Comment from: Olmecmystic

Karma's a bitch, ain't it?

"Be kind to people on the way up, because those are the same people you'll run into on your way down." That's how I was raised; Mikey-boy, not so much.

Oh, well. Another one-trick-pony who's done his trick. Nothing else to see here.

Peace.
Olmecmystic

P.S. And what's with that picture of him? Doesn't he look mystified, like "WTF is going on?"

Aug 28, 08 - 04:56 pm Comment from: pastrychef

Anyone who didn't see this happening has to be blind. Once they started selling their computers in Wal-Mart and Staples, margins would have to go down to allow room for the retailers to make some profit. By abandoning their direct sales model, I think they doomed themselves. Before long, they will be like Gateway.

Never mind, it will all be fixed now they emply Rob Enderle to show them how to beat Apple..

Aug 28, 08 - 04:58 pm Comment from: BiZarRo BaLlmEr

But doesn't Dell have that cool new PMP player coming out..that'll turn things around.

Aug 28, 08 - 05:00 pm Comment from: ericdano

And why is Dell wanting to spend the money to get in to the portable Music player market again?

Aug 28, 08 - 05:08 pm Comment from: G4Dualie

dell just began selling 250 dollar computers in India and China and if this quarter is any indication of what the next one will be like, it means even smaller profit margins.

Dollars to donuts, the Chinese buy up dell just like they bought out IBM's PC business.

hahahaha..i love mdn =)

"Dollars to donuts . . ."

You just got Rob Glaser's attention.

Dell figured out how to squeeze margins, logistics, warehousing, suppliers, etc., before everyone else in the internet age.

But then everyone else figured out how to do the same thing.

So why do we need Dell anymore?

Aug 28, 08 - 05:40 pm Comment from: Road Warrior

My solution: Keep hiring the best like Enderle and keep the company going until someone else has to shut it down and there is no money left to give to the shareholders.

LOOHTL
(Last one out, hit the lights)

Aug 28, 08 - 05:48 pm Comment from: January 24, 1984

I know a few people who own Dells. They're all cheap.

That kind of exiguous, grinding cheapness that casts an aura of angst, and bitter feelings.

Yuck!

Aug 28, 08 - 06:26 pm Comment from: Arnold Ziffel

My organization, a mental health agency, uses nothing but POS

Dells, and they are total junk. I especially like their "creative,"

unforgettable names, like Dimension and Vostro (ooh, that's a

catchy one!). I have a 22" Viewsonic monitor

accompanying my Dull, and it warns me at least 5x a day that

I'm not using the best resolution for the monitor, which is by

choice, by the way. The dialog box that pops up tells me to push

'1' to hide the box or '2' to disable it. Well, guess what folks, no

matter how many times I push those keys, nothing happens!

Mind you, having this pop up isn't the worst thing that can

happen to me, but it is annoying to have to stop my flow of work

to wait the 10 seconds for it to disappear on its own.


Also, when I give my Dull the "three fingered salute" to log back

on, oftentimes (at least 1x a day), the left half inch of the

desktop disappears off the edge of the screen, and the only way

to alleviate the problem is to reboot. What a steaming pile of

Vista it is (even though we run XP exclusively, with no plans to

'upgrade' to the steaming pile).

Aug 28, 08 - 06:29 pm Comment from: BayouGator

Bought two Dell laptops for my daughters over the past 4 years. They last about 2 years and then are throw away. My Mom's still running my wife's old G400 Tower from ~1995. What does that say?

Psystar's only hope is to get buy up by Dell, and symbiotically if Psystar does not win, Dell is in Deep Doodoo. Dell has one trick and one trick only - imitate then produce cheaper. It can offshore all the labor it wants, but about now the offshore based companies took a looks and said, hey, we can make the same PCs even better than Dell and cheaper still. Take Lenovo, Acer, Eee, etc. Ironically, I think Dell will survive for a while imitating new models coming from Apple, for those customers who want the look, but not the price, until they realize they don't have the same functionality and performance. Then Dell will be Done.

Don't be so hard on Mikey, he has no choice but to use Billy's Windows operating system. That Bully Steve won't share Mac OS with him. It is not really Dell's fault that he has only mediocre computers to sell.

Yup, time to liquidate and give what he can back to his shareholders. What goes around comes around.

Buy a Dell and burn in Hell!

(Same goes for, Acer, eMachine, and Lenovo!)

i think steve jobs should offer to license OSX exclusively to Dell.




here me out before you all judge me.




then at the last minute, pull out of the deal and watch Mike shit his pants. fuhahahahhaah

Shut It Down
Shut It Down
Shut It Down
Shut It Down
Shut It Down
Shut It Down
Shut It Down
Shut It Down

and all other forms of ass too, but lets get real here. So margins are down by 3% (17 from 20 last quarter) but revenue was up, and they still made a profit, 616 MILLION dollars, and that in the midst of the worst economic downturn in 20 years......

All things considered, I'm not sure why the analistas are at it again whining about stuff being down and off of the 'predictions' Everything is off and down, so why don't the anal-istas make their predictions lower and more in line with the realities of the economy?

Butt munchers like Dell are the worst of the worst bottom feeders, but anytime a company turns a profit in an economy like this, they shouldn't be punished by the anal-istas, and we should cheer their success. Plenty of time to see them go under and roast in hell when our economy isn't failing.

he he he he he he he he he he he he he

he said butt munchers are bottom feeders, getit? BOTTOM feeders!

Comedy gold that one.....

Aug 28, 08 - 07:30 pm Comment from: ChrissyOne

Beleaguered Dell Beleaguered Dell Beleaguered Dell Beleaguered Dell Beleaguered Dell Beleaguered Dell Beleaguered Dell Beleaguered Dell Beleaguered Dell Beleaguered Dell Beleaguered Dell Beleaguered Dell Beleaguered Dell Beleaguered Dell Beleaguered Dell Beleaguered Dell Beleaguered Dell Beleaguered Dell Beleaguered Dell Beleaguered Dell Beleaguered Dell Beleaguered Dell Beleaguered Dell Beleaguered Dell Beleaguered Dell Beleaguered Dell Beleaguered Dell Beleaguered Dell Beleaguered Dell Beleaguered Dell Beleaguered Dell Beleaguered Dell Beleaguered Dell Beleaguered Dell Beleaguered Dell

(miss me?)



-c

I have an idea for him....

Sell the company and give the money back to the shareholders...

**chuckling**

John in Fairbanks

Selling software gives a higher gross margin than selling hardware. Selling a mix gives a gross margin somewhere in the middle. Explanation to MDN and others who are surprised: cost of sales for software includes a DVD and some nice packaging, cost of sales for hardware includes CPU, GPU, RAM, LCD etc and a lot of injection molded plastics.

Dell: Gross margin 18.88%
Apple: Gross margin 34.08%
Microsoft: Gross margin 80.80%

Looking at profit follows the same pattern (millions USD):
Apple 1,072 net income on 7,464 total revenue.
Microsoft 4,297 net income on 15,837 total revenue.

Finally, a quick conclusion in MDN style:
It's here. The beleaguered Apple. Half the work. Quarter the profit.

http://www.reuters.com/finance/stocks/ratios?rpc=66&symbol=AAPL.O
http://finance.google.com/finance?q=NASDAQ:AAPL

Gotta love MDN's photo.

Yes, Mikey, your sky IS falling!

On the conference call at 17:00 ET, DELL execs indicates that the reason for the margin shortfall is that that making a strategic investment in price cuts in the EMEA (Europe, Middle East, and Africa) geographic region.

These price cuts are intended to boost revenue and profit, which they expect to book and recognize in forthcoming quarters.

However, the investment has to come first, and hence the margins declined this past quarter.

DELL execs emphasized that this was a voluntary and strategic decision on their part, and it was not necessarily driven by competitive pressures.

No further details of the investment or future revenues or profit were given. DELL typically does not issue earnings or revenue or margin guidance for future quarter.

This explanation -- strategic investment in price cuts in EMEA to drive future revenue and profit -- may or may not fly with investors in future quarters. It will presumably hinge on actual signs of improvement in EMEA business.

For today, though, the market doesn't seem too happy with the earnings miss and the reduced margins. Investors never like to see margins dropping. DELL shares dropped in after hours trading to a low of $22.41 and ended at $22.64.

In the forthcoming days, watch the price action. If the stock tries to rally, it may run into resistance in the $23.00 and $23.50 area, which were the stock's previous support levels and probably will now become resistance levels. If DELL fails to rise convincingly above $23.00 and $23.50 tomorrow and early to mid-next week, it may make new lows in the forthcoming weeks as investors continue to sell.

One huge caveat on all the above: The share volume of today's trading is light. This is because we are in the late August timeframe and in the runup to the start of the Labor Day weekend, when many traders and investors are on vacation. So any and all price movements -- both up and down -- are suspect until tested and proved in a more liquid trading environment.

Of course, DELL's CFO would have known that trading volume would be light in the late summer timeframe, and I suspect that may be one reason why they scheduled their earnings release for August 28th, when few investors are paying attention.

Keep squeezing those margins, Mikey. Until there's nothing left.

Already there.

Seriously, what compelling feature does Dell offer besides cost?

<crickets chirping>

Thought so.

Once you've achieved bottom-feeder status, there's no way out.

Squeeze those pennies, Mike. You'll need all of them.

Twice the work. Half the profit!

GOD the folks at Dell must be simply exhausted and now they have to do it all again in order to lose more of the shareholders hard earned money!

Wait does Dell even have any stockholders left?

What's next buy a Dell at a fire sale price and get a laptop or two for free or do they pay me to take the free one!

I think the time is near at hand to close the doors and hand over any remainning money to the few shareholders who are left and call it a day!

Mike retirement is in your future, where you know it or not!

Shit guess what the MDN Magic Word is for this one?

"FREE" no kidding but timely!

Aug 28, 08 - 08:42 pm Comment from: G4Dualie

Who else here would like to see ODonnell & Maddow kiss one another?

Whu, huh? What? Did I say that out loud?

C1

Yes.

Aug 28, 08 - 09:05 pm Comment from: Bluefin

ChrissyOne...

Where you been?

Aug 28, 08 - 09:46 pm Comment from: DogGone

In a few quarters Dell will not be even making a profit. The signs are there. It is wasn't for the fact that people will lose jobs as result, I would be really happy to hear them lose money.

Aug 28, 08 - 09:48 pm Comment from: Greg L

All I can say is this:

http://phobos.apple.com/WebObjects/MZStore.woa/wa/viewAlbum?i=252039712&id=252039711&s=143441

Aug 28, 08 - 10:36 pm Comment from: Mac Daddy

Mike,

Eat Shit.

-Steve

Aug 28, 08 - 10:54 pm Comment from: Murasaki

My question is how soon can Apple buy Dell

Aug 28, 08 - 11:55 pm Comment from: Mr. Reeee

BayouGator... wow your wife shore is smart, cuz she bought a PowerMac G4 4 years before they were officially released in September of 1999!

Dell, Dell, go to HELL!

I'm trying SOOOOOOOOOOOOOOOOOOOO hard NOT to gloat.