Word: delling
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...Dell's invasion of your living room is part of what promises to be a free-for-all in the $100 billion U.S. consumer-electronics market. Computer makers like Dell are responding to slowing sales by leaping into new arenas, going head to head against consumer giants like Sony. In August, No. 2 computer maker HP launched 158 consumer products, most notably digital cameras to work with its market-leading printers. Gateway, which hit the jackpot last year with a $2,999 plasma TV, plans to introduce 50 more consumer products for the holiday season...
Callers to Dell's support lines, meanwhile, were already looking to Dell for help with their consumer electronics. Their big complaint wasn't about hardware anymore but that many new digital gizmos did not work with Dell computers. "Consumers feel they haven't been well served by consumer-electronics companies," says George. "These companies always have the next hot thing, which doesn't work with the last hot thing and doesn't work with the competitor's next hot thing. So you're always in the wreck-and-rebuild stage...
...important lesson, because Dell isn't likely to produce many next hot things. The company, which spends a mere 1.5% of its $38 billion in revenue on research, isn't concerned with being innovative, says John Hamlin, general manager of Dell's U.S. consumer business. "We're not first," he says. "We just do it better. We're not embarrassed to admit it. We've come out of nowhere to be the No. 3 consumer brand in the U.S. in less than five years, while Coca-Cola has been doing it for 100 years." Of course, adds Hamlin...
...consumer electronics remains Sony, a true innovator. To conquer the consumer market, Dell wants to solve the gadget-compatibility issue and speed the transition to the digital home. So Dell recently--and quietly--began offering basic home installation of computer networks for $119. The Dell.com site, which will be revamped on Oct. 10, even has a search engine to help homeowners locate providers of broadband service, another prerequisite for the coming digital transformation...
...manage all the music, video and digital photos pouring out of new gadgets on the market, the company last week copied its competitors and introduced a Microsoft program, dubbed the Dell Media Experience, that will come preloaded on all new Dell Dimension computers. "In time we hope it will become a central repository for the family," says senior vice president John Medica. For now, at least, the product has one big advantage: it's free...