<![CDATA[Gawker: valleywag, dell]]> http://tags.gawker.com/assets/base/img/thumbs140x140/gawker.com.png <![CDATA[Gawker: valleywag, dell]]> http://gawker.com/tag/valleywag/dell http://gawker.com/tag/valleywag/dell <![CDATA[Twitter, Facebook Just Actively Ignoring Business Opportunities Now]]> Who can afford to be blasé about making money in this economy? A hot Web 2.0 startup, it turns out.

It turns out Dell sold $3 million worth of computer gear through its Twitter feed alone, meaning it has made $3 million more off Twitter than Twitter itself. Shouldn't Twitter be charging these guys? The revenueless microblogging service insists any moneymaking schemes must be sufficiently "interesting" and "innovative."

Enterprising Facebook employees, meanwhile, wanted to charge users a nominal fee for those custom short URLs that go on sale tonight ("facebook.com/whoever"). But the company reversed this decision, Business Insider reports. Bizarre. Is earning revenue at the nickel and dime level so shameful? It might be tougher than depositing a check from a Russian hedge fund, but the money is also free of money related complications.

(Pic by Joi Ito)

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<![CDATA[Dell Discovers Ladies Use Computers For More Than Diet Tips]]> In response to widespread internet backlash, Dell has revised "Della," its website marketing netbooks to women, purging it of references to calorie counting and shopping.

When Della launched earlier this week to promote the computer manufacturer's line of Inspirion Mini 10 netbooks, the site included a video on shopping for vintage clothing and "Tech Tips" explaining how ladies could use this strange device, as of course, we don't know how to use real laptops.

Joanna Stern summarized on LAPTOP magazine's website:

The Tech Tips page, with its patronizing "Seven Unexpected Ways a Netbook Can Change Your Life," is full of stereotypes of how women's lives can be changed with a mini-notebook... "Track your exercise and food intake at free online sites like Fitday," is Tip Number One, like any self-respecting women's magazine would recommend. Number two: Find recipes online (just because we have laptops doesn't mean we don't still belong in the kitchen). Dell, is this all you think us women do with our laptops? Or do you think women are that slow at the technology uptake that we don't know that a netbook is capable of these activities?

In response to the huge amount of criticism the site received online, yesterday, Dell revised the site, adding the message, "Some of you have read this article over the last several days & will notice a few modifications. You spoke, we listened. Thank you for your ongoing feedback." The "5 Ways to Use a Netbook" section now boasts that the product can help women get organized, read eBooks, track workouts, and is easy to take along when traveling. The page on "featured artist" Robyn Moreno and her video on vintage shopping are still up.

"Some brands go too far with the girlie stuff, and that's when they start getting into trouble," said Andrea Learned, author of Don't Think Pink - What Really Makes Women Buy in the New York Times. Learned said Della emphasizing netbook colors and computer accessories, but burying price information and specifications, seemed condescending to women. "Della's marketing strategy sounds like it's advertising a purse," Ms. Learned said. "There's a level of consumer sophistication they're missing."

"There was certainly no intent to offend anyone and if we did, we apologize," said Dell spokesman Bob Kaufman, according to MSNBC, adding, "Many people do see their laptops and netbooks as a style statement, and we want to be part of those conversations." Style is an important consideration, especially since you'll hopefully be staring at the computer for several years, but it isn't the most important factor in purchasing a computer, nor is it something only women care about. As several of our commenters pointed out earlier, Apple and many PC manufacturers have used style as a selling point to both male and female consumers, but don't assume in their commercials that people don't care about the product's performance as well.

Though Dell revising the more egregiously annoying aspects of the site is a step in the right direction, it still takes a few clicks to find any specifications on Della. The section about Mini 10 Netbooks on Dell's main page seems to include a comparison of the three netbooks' prices, processor speeds, and display sizes. We're not sure what all those crazy numbers mean, but we still don't want a Dell netbook, even if it does come in pink.

Dear Della, Sexism Doesn't Sell Laptops [LAPTOP]
5 Ways To Use A Netbook [Della]
What Do Women Want In A Laptop? [The New York TImes]
Let's Market PCs Like It's 1959 [MSNBC]
Mini Notebooks - Products [Della]

Earlier: Marketing Madness

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<![CDATA[Vladimir Putin Taunts Michael Dell]]> Dude, Russia's not getting a Dell. That's a polite version of what Prime Minister Vladimir Putin, Russia's testy KGB agent turned autocrat, told Michael Dell in Davos. Dell's sin? After Putin delivered a fiery 40-minute sermon about the doom of the West, Dell asked if there was any way his company could help Russia with its computers. Yes, he gave a tacky sales pitch at the high-minded World Economic Forum. But he didn't deserve the tongue-lashing Putin gave him next, as reported by Fortune: "We don't need help. We are not invalids. We don't have limited mental capacity."

Ouch! That's almost as bad as the time someone asked Dell what he'd do if he ran Apple, and he said he'd shut it down and return the money to shareholders. Apple is now worth four times as much as Dell's company.

(Photo by AFP/Getty Images)

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<![CDATA[Pro journalists flub Dell CTO's departure]]> This morning, I blogged that Dell had "unpublished" CTO Kevin Kettler from the company's executive staff page. Kettler had been planning to leave as part of a reorganization, but his sudden disappearance from the management headshots would indicate a food fight behind the scenes. Truth is, Dell had never put Kettler on its exec staff page. As CTO, he wasn't considered one of the suits. There's a lesson here for me: John Paczkowski, from whom I got the factoid that Kettler had been removed from the management page, can be as wrong as Valleywag when he really tries. Sorry for the error. I have only one question for Paczkowski's publisher, AllThingsD: You guys hiring? (Photo by CNET/Stephen Shankland)

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<![CDATA[PC maker rediscovers PC market]]> Wall Street types are worried because Michael Dell's company hasn't delivered the new music player that had been in the works for the holiday shopping season. The launch has been canceled, says an anonymous insider. That's the best news I've heard from Dell in a long time. Here's why.

Competing with Apple on the iPod front seems like a Formula for Fail. My guess is Dell made an honest effort to develop an iPod competitor, then killed the expensive marketing campaign and production run after deciding that they'd built another Zune. Dell has also fallen behind on its downsized-laptop "netbooks", which have neither the power of a full-size notebook nor the portability of an iPhone.

Why bother? The biggest segment of the consumer electronics market is still standard-size notebook computers. Dell has fallen from No. 1 to No. 3 position in sales, but that's still a lot of sales. Instead of diluting the company's resources across smaller, trendier markets, it seems more sensible for Dell to refocus on its core product, the cheap-but-impressive PC. Hey, I'd buy one. (Photo by AP/Manish Swarup)

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<![CDATA[Dell wants employees to practice being laid off]]> Call it Company (Red). Michael Dell is asking employees at his computer maker to take five unpaid days off and thus help the company trim costs instead of slashing jobs. Extorting your people by suggesting they take a small hit now as opposed to a larger hit later on isn't particularly original. “We’ve seen a slowdown in spending,” says a Dell spokesbot, “but the primary reason is to ... to better position Dell for long-term competitiveness.” That makes no sense: Skimping on five days of payroll may temporarily give the company's bank account a fillip, but it doesn't change its permanent cost structure. Then again, maybe Dell's strategy is to drive away employees who are capable of doing math.

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<![CDATA[After layoffs, Michael Dell brags]]> In a briefing with journalists, Dell CEO confirmed the completion of his company's 8,500-people layoff. He was not demonstrably saddened, as is normal founder practice when discussing layoffs. But he did point out a recent IDC report showing Dell "outpacing" the rest of the PC industry. If Dell's falling stock price is any indication, the company might be outpacing everyone to the poorhouse. (Photo by eschipul)

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<![CDATA[Microsoft, Dell agree: Windows XP is worth more than Vista]]> Most old software gets remaindered to the bargain bins. Not Windows XP, however. In June, Dell wangled a deal with Microsoft to let it install the older operating system for customers who didn't want Vista. In June, the companies charged $50 extra. According to this order page, XP now costs an extra $99 — on top of the cost of Windows Vista, which is baked into the basic price for the computer. Here's the full order page:

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<![CDATA[New York Times reporter says he's an unwitting Dell shill]]> Marc Santora, the New York Times reporter who appears in ads for Dell's DigitalNomads site, says he received no compensation for the ad, which came from an interview Santora did for Big Think, a website backed by Facebook investor Peter Thiel. What appears to have happened: Dell or its ad agency, Federated Media, created the ad for Dell's DigitalNomads, using a clip from Santora's Big Think video. In a comment, Big Think cofounder Peter Hopkins says that Dell is a sponsor of his site, but the ad does not mention Big Think. (The Big Think interview was also published to YouTube, and DigitalNomads' producers embedded the clip in a blog post.) From what Santora's saying, no one asked him or the Times for permission to run the endorsement. If so, Dell could be in rather big trouble — and not just with the Times.

FTC rules forbid deceptive advertising — such as an ad from Dell which suggests a New York Times reporter has endorsed its vision of mobile technology, when he hasn't. The agency also has strict rules governing endorsements, not all of which seem to have been followed here. Bottom line: Santora seems to be the victim of a sleazy new Internet-enabled advertising tactic. He does offer this amusing side note: The one time he wrote about Dell was when the computer maker's "Dude, You're Getting a Dell" spokesman was arrested on pot charges. Here's his note to us:

I am not really sure what to say about the item posted on your website about my being a "shill" for Dell. I was asked to do an interview fror a starter web site called "Big Think." I checked them out and they have interviewed a good number of respectable people and I had heard of no problems. They wanted to discuss the role changing technology has had in covering things like the war in Iraq. Seemed harmless. I received absolutely NO compensation. And I have no idea how they do their advertising.

I am on vacation and on my way to India so will not be checking in much, but thought it might be worth clearing up any improper suggestions linger.

BTW, if it matters — and I can't believe it does because this all seems a bit silly — the only piece I ever wrote about Dell was when "the Dell Dude" was busted for using pot. I think I wrote a couple of pieces on that actually. http://query.nytimes.com/gst/fullpage.html?res=9A0DE7DA1F3BF931A25751C0A9659C8B63&n=Top/Reference/Times%20Topics/People/S/Santora,%20Marc

Anyway, going back to my vacation. Hope this helps.

Cheers,
Marc Santora

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<![CDATA[The 10 richest tech companies]]> Where's the debt crisis in Silicon Valley? The knock-on effects are all too real, but frozen credit markets have had little direct effect on business operations, aside from possibly scotching the debt-fueled sales of Alltel and Nextel. That's because technology companies are run by paranoid sorts who like to keep large cash reserves, in case some upstart renders their market obsolete. In good times, activist shareholders whinged about their parsimonious habits, but the cash hoarders are now sitting pretty — and could be set for acquisition binges.

One company which listened, to its detriment, to shareholders was Microsoft. When Bill Gates ran the software company, he liked to keep a year's worth of expenses on hand, in case things went awry. Microsoft is no longer quite so stingy with its cash; it dribbles some out in dividends, and gave shareholders a $32 billion payout a few years back. Good thing it didn't shell out $44 billion for Yahoo; that deal would have left it cash-poor and debt-ridden, at exactly the wrong time. Even so, Microsoft's balance sheet is no longer the most sterling in tech.

So who's got cash on hand? Here are the 10 richest tech companies, from a Yahoo Finance screening. (I left out companies, like IBM, whose cash was matched by equally outsized debts.)

  1. China Mobile, $31.0 billion
    China's oil, steel, and finance giants are investing overseas. Why not its leading wireless company? Yes, China censors its citizens. That was a trendy thing to worry about in August 2008.
  2. Cisco Systems, $26.2 billion
    Cisco's so proud of its cash pile, its investor-relations chief has blogged about it. If only investors had any confidence in Cisco's bizarre social-network acquisition strategy, which has nothing to do with its fine telecom-equipment assets. Memo to Cisco's M&A team: Just because it has the word "network" in it doesn't mean you have to buy it.
  3. Microsoft, $21.2 billion
    The $44 billion Yahoo offer was half in cash, half in stock, which would have strained Microsoft's finances and required it to take on some debt. Good thing it fell through.
  4. Apple, $20.7 billion
    In the '90s, Apple almost ran out of money. No danger of that happening soon. Ever-secretive Apple rarely makes big, splashy acquisitions; that could change if the right bargain comes along.
  5. Google, $12.7 billion
    A slumping share price may mean more acquisitions done for cash.
  6. Intel, $12.0 billion
    Intel's chip factories require billions of dollars in investment; count on Intel to spend its money there, rather than on cute Web companies.
  7. Nokia, $10.8 billion
    Like Cisco, Nokia's eager to be more of a Web player. Blogging and lifecasting are particular areas of interest. The cell-phone maker could throw investors a curveball and buy, say, Six Apart, Automattic, or Tumblr.
  8. Dell, $9.0 billion
    Dell could have more cash on its hands if it manages to sell its PC factories, a move it's considering as HP chips away at its business. On the shopping list: software and services.
  9. Motorola, $7.2 billion
    It's hard to see Motorola being an active acquirer until it figures out what to do with its cell-phone business.
  10. Taiwan Semiconductor, $7.0 billion
    AMD's only worth $2.6 billion, and TSMC already makes some chips for it. Why not just buy it?
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<![CDATA[New York Times reporter shills for Dell site]]> Why is Marc Santora, a respected war correspondent for the New York Times, appearing in ads chattering about mobile technology? Click on the ad, running on sites like VentureBeat, and you're taken to a site, DigitalNomads, which appears to be a collection of blog-filler pablum about the wonders of the wireless Internet. Buried at the bottom is a tiny disclaimer: "Powered by Dell." Dig under the ad-placement code, and you'll see that the ad is sold by Federated Media, John Battelle's online-ad network. Battelle's outfit grew infamous last summer for getting some of the bloggers for whom he sells ads to recite a sponsor's slogan. That last time, it was Microsoft.

At no point does Santora mention Dell's name. But his underlying message, that new technological gear helps us all do our jobs better, certainly serves Dell's purposes. I would have thought that the strict Times ethics code would forbid such an endorsement, paid or otherwise. Why bloody the reputation of someone who's taking a bullet to get stories for the newspaper? I've asked the Times what's going on, but haven't heard back yet. Update: Marc Santora has written in to let us know he had no involvement, financial or otherwise, with the ad — which just adds to the headscratching.

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<![CDATA[Lehman Brothers spent $309M on IT last quarter]]> Pride cometh before the fall, with Lehman Brothers having spent $309 million on information technology infrastructure in the quarter before the venerable financial firm went belly-up, which was up from $282 million the previous quarter. The company spent $1.1 billion on IT in 2007. Projects included a system for the London Stock Exchange to create an anonymous, automated way for traders to do business (which, in the wake of the United Airlines share price debacle, sounds like a fantastic idea). While the relevant divisions can be split off and sold (and the IT grunts are still hard at work), as more banks fail, selling IT equipment to financial firms doesn't look it's going to be a growth business for some time to come.

"The financial services sector is the bellwether sector for the IT industry because of its amount of spend on IT," she said. "The demise of banks such as Lehman creates a sudden, very large reduction in revenue for the IT sector."

Which is terrible news for companies like Dell, which is already seeing "conservatism in IT spending in the U.S., which had extended into Western Europe and several countries in Asia." Could be good news for eBay, though, if equipment needs to be auctioned to cover some of those billions in write-downs. (Photo by AP/Mary Altaffer)

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<![CDATA[Dell sales, stock price slipping]]> "The company is seeing further softening in global end-user demand in the current quarter," a Dell spokesperson told Reuters on Tuesday. The news had company shares down over 10 percent an hour after this morning's market open. In August, Dell posted poor profits and said it planned to cut 8,500 jobs. Earlier this month it announced it would begin selling factories in China, Malaysia and Brazil.

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<![CDATA[New Dell infomercial reality show premieres on A&E]]> "We Mean Business" is a new reality show that debuted on cable channel A&E over the weekend. Though "reality show" is somewhat of a misnomer. As the clip above makes clear, it's really just one long infomercial for its biggest sponsor, Dell. It stars former “Apprentice” winner Bill Rancic, who these days serve as celebrity non-chef Rachael Ray's "financial buddy"! Rancic is accompanied by a stereotypically flamboyant interior designer and a sexy-librarian-looking computer whiz. The implication: Dell is funding the fantasy that business problems can be fixed with glib advice from a self-appointed business expert, some new computers, and better-designed offices. If that were true, wouldn't we see more successful startups out of San Francisco?

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<![CDATA[35 percent of biggest companies own ____sucks.com]]> A study of Fortune 500 and other companies found that one in three have bought the name, say, walmartsucks.com. But corporate attitudes toward hate sites vary widely between, say, Dell and Xerox:

FairWinds based its analysis on 1,058 domain names for companies on the Global 500 and Fortune 500 lists. Of the companies surveyed, 35% own the domain name for their brand followed by the word "sucks." They include Wal-Mart Stores, Coca-Cola, Toys"R"Us, Target and Whole Foods Market, according to FairWinds. Some 45% of these domains have yet to be registered by anyone. The study found that the majority of companies that do own these domain names publish no content on them.

Some have been much more aggressive than others. Xerox, for example, has bought or registered about 20 unflattering domain names, including xeroxstinks.com, xeroxcorporationsucks.com and ihatexerox.net. But other companies, such as Dell, have taken a more hands-off approach. DellisEvil.com, MyDellSux.com and IHateDell.info are for sale, but the computer maker says it has no interest in buying them.

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<![CDATA[Dell to sell factories worldwide]]> Insiders have blabbed to the Wall Street Journal that Dell "has approached contract computer manufacturers with offers to sell ... its computer factories." Founder Michael Dell is a Texan, not a Valley guy. But he did build a $1,000 investment into the world's biggest PC maker, starting from his college dorm in 1984. Shedding its factories would be a huge change for Dell, which made its name on build-to-order sales. Why would Dell dump its plants?

The WSJ recounts how Dell got from there to here:

Dell's plants are still regarded as efficient at churning out desktop PCs. But within the industry, company-owned factories aren't considered the least expensive way to produce laptops, which have been the main driver of growth lately and are complex and labor-intensive to assemble. Rivals such as Hewlett-Packard Co. years ago shifted to contract manufacturers — H-P builds less than half of its PCs in facilities it owns.

Contract manufacturers can generally produce computers more cheaply because their entire operations are narrowly focused on finding efficiencies in manufacturing, as opposed to large firms like Dell, which must also balance marketing and other considerations.

For many Dell notebooks, a contract manufacturer already partially builds each system in a plant in Asia. The half-built computers are then shipped to one of Dell's own plants where assembly is completed. Because each computer goes to two factories, Dell refers to the system as "two touch."

Selling factories could be a culmination of a plan Dell started last year to increase its reliance on contract manufacturers, something competitors did first. "A lot of companies are already on that model," said Mike Cannon, Dell's production chief, in an interview earlier this year. "We're playing catch-up there."


(Photo by AP/Manish Swarup)

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<![CDATA[Dell hopes the telephone company will buy computers for you]]> A Citigroup analyst says "netbooks" — cheap mininotebook computers like the Asus Eee — will make up a third of all notebook sales in the future, and the majority of sales in developing nations. Michael Dell pitched his company's NetBook product line as something telcos could offer to customers for free, subsidizing the hardware with monthly subscription fees. [ZDNet]

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<![CDATA[Dell can't have cloud computing]]> Michael Dell will not get paid every time you say "cloud computing." The U.S. Patent and Trademark Office has finally shut down Dell's attempt to trademark the phrase "cloud computing" late last week. Earlier in the week, the USPTO reversed a decision letting Dell proceed with its trademark request. [The Register]

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<![CDATA[Former PC World chief: Macs no more expensive than PCs]]> "A MacBook is in the same ballpark as a roughly similar Dell or HP, and less than a Sony." That's the conclusion of Technologizer editor Harry McCracken, after running the numbers several different ways on competing notebooks. The MacBook didn't win most hardware categories, but it came out well-rounded, with superior warranty service and media software. McCracken, until recently the editor in chief of PC World, was infamous among local tech journalists for toting Apple laptops to work.

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<![CDATA[Dell still wants to get paid every time you say "cloud computing"]]> Dell's recent attempt to register the term "cloud computing" as a trademark has taken on one small hitch. The U.S. Patent and Trademark Office recently reversed its decision to grant a "Notice of Allowance" — a written notification that a specific mark has survived the opposition period following publication — and is reviewing Dell's request once more. Maybe Dell will have better luck selling its MP3 players. [Sam Johnston]

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