March 20, 2009

why a $2,000 dell makes sense

Many have raised an eyebrow over the seemingly-untimely introduction of Dell's new micro-thin flagship laptop, the Adamo. Thinner than a Macbook Air and milled from a single piece of billet aluminum, the Adamo represents a big diversion from the bland plastic PC clones that Dell has been steadily churning out for most of their history.In a recession economy, it may seem foolish to unveil what is essentially a $2,000 novelty computer. It is not nearly as powerful as most laptops costing half, and seems largely an exercise in design rather than actual function.

I would contend that Dell isn't trying to, nor is expecting to sell many of these computers. What they are trying to sell is an image or a brand.

As I mentioned before, Dell has had a long past of cranking out PC clones that don't stand out in the crowd. They are nicely featured and represent "a good value" in most cases, but they don't exactly get anyone's heart racing. Enter, Adamo. The Adamo is more a selling of ideas and image than it is an actual product.

Look at the marketing
. The words used most repetitively through their entire campaign are "craftsmanship" and "style". Dell goes through great lengths to emphasize the quality of materials and construction. Check out the introduction video below if you don't believe me:



What Dell is doing is creating a major shift in their image. Apple has long dominated the market in terms of perceived quality. Their machines are solid, elegant and sculpted. They don't creak and crack when they are handled, and their lines are fluid enough to find a home in a modern art museum. Apple has long made a market for their product based mostly on image, and Dell wants a piece of that (Apple) pie (pun intended).

Dell is not introducing the Adamo to sell Adamos. To do so would be a rather foolish expectation at a time when high end computer sales are plummeting, and the PC is earning a bit of a bad reputation in the wake of the rise of Apple's OS and the rampant Vista bashing.

What I firmly believe Dell is trying to do is instead sell more low-end product through a shift in their branding. If they can create a change in the consumer's perception of their product by introducing something high-end, Dell knows that buzz generated by the Adamo will attract consumer attention to the rest of their product line.

A lot of people wander into Chrysler dealerships to look at the new Dodge Viper, but how many actually leave with one? Consumers will be reassured that Dell is in fact a competent and leading-edge manufacturer, which will trickle down into consumer confidence in their lower-end offerings as well.

So maybe a $2,000 laptop isn't such a stupid idea after-all. What do you think?

2 comments:

Anonymous said...

Nice post. I enjoyed it a lot. While I think you raised an excellent point - I don't think that was Dell's intention. I have worked for the Dell/Home division under it's current leadership and wouldn't be going out on a limb if I said this was a poorly timed product launch. If you've followed Dell over the past 2 to 2 and a half years you would understand. The consumer division is a true clown car. Off the top of my head the most relevant example I can think of was the botched inspiron launch a couple summers ago leading into back to school. It was poorly timed, where demand exceeded the production ramp rate which lead to 6-8 week product delays and canceled orders. I have tons of respect for any enterprise division within the company. That is what made Dell, Dell.

Seely said...

Great to hear a comment from the inside! I had forgotten about the fiasco a few years ago. I've worked more with Dell on the enterprise end, and have always respected their service. I admit, I definitely took liberties make assumptions on Dell's behalf. I was at least *hoping* I had hot on why they would have such a seemingly untimely launch!


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