Why is Dell failing?

Okay, maybe not failing, but things aren't looking very rosy. Quarterly sales figures for PCs came out recently, and there was a bit of a shocker. Dell, who had been the top PC seller for a number of years, has lost the top spot to HP. They've basically lost about 15% of their market share. The real question here is, do they deserve it? Well, maybe. Dell has made some mistakes in the last few years. Don't get me wrong, every time I use a Dell computer, I really like it. They make solid products. But there's always the possibility that things could go wrong. If you've ever had to deal with Dell customer support, you can see why they're going down.

I remember back in the day, when Dell was a really great company to work with. That's what set them apart. As the demand for PCs has increased, the prices have been pushed down. The market has largely become a race to the bottom. So in a way, we're all to blame for this. How does Dell make up for the price cuts? Apparently in the customer service department.

Barely a week goes by when The Consumerist doesn't have a horror story about Dell's poor customer service. I had a Dell a few years back as a second PC, and my experience was... not stellar. They have a serious problem with their image. Consumers often don't realize how much those calls to Dell cost them. If you have to call more than a few times, Dell has effectively lost money on the transaction. So where does Dell go from there? They get cheaper representatives. That's why when you call Dell, you get routed to India. I'm sure there are plenty of tech savvy people in India. But they don't work for Dell.

Above: The perils of tech support

I feel like this strategy has backfired. I really have to wonder how much they are really saving. Even paying someone a fraction of what you would pay in the US, is it still saving that much? If you call with a simple problem, but the rep on the phone is poorly trained and just follows a script, it's likely to take much longer to fix. Maybe it isn't even fixed. Maybe you get transferred around. Maybe you accidentally get cut off and you have to start all over. Maybe when all is said and done, Dell would have saved money having a well trained individual answering the phone. I have my fingers crossed Dell, I actually like your computers.

Oh, and get rid of those weird mouse buttons on the Mini 10. Seriously.