Dear Dell: How to beat the iPod
 |
| Dell's first "iPod killer," the Dell Digital Jukebox, was discontinued in 2006 … |
 |
| … while Apple's iPods continue to dominate the MP3 player market with a 70 percent share. Photos: Dell, Jon Fortt |
From: Jon Fortt
To: Michael Dell
Subject: Taking down the iPod
Dear Michael,
You might remember our recent chat at Fortune's Brainstorm Tech conference, when you shared with me a theme you've sounded before: "I think the sign of a great company is that it can kind of learn from its mistakes," you said, "and go on to greater heights."
You were talking about Dell's (DELL) PC business, where you've tweaked the direct sales strategy in response to a changing market. But you could just as easily have been referring to your company's tentative plans to release another MP3 player this fall to compete with Apple's (AAPL) iPod. I think if you follow your own observation, you'll delay the product launch. Dell's not ready to make this mistake again.
Let's think back on your first effort at dethroning Apple. It crashed and burned. The Dell Digital Jukebox, which resembled nothing more than an electric razor when it launched in 2003, tried to use commodity components and licensed software to beat the iPod on price, and thus win market share. But the DJ fell short in physique (bigger and heavier than the iPod), originality (it was based on another company's design) and music management software. Dell used Musicmatch Jukebox, which was, well, no musical match for Apple's iTunes.
To your credit, this time around Dell executives seem to be considering a slightly different tack. Not only have you gotten better at designing devices, you see the folly in just making a gadget that depends on someone else's software to operate. Dell now has its own: You last year purchased Zing Systems, a company that uses Wi-Fi to beam songs – and potentially video – to various devices. The new plan would be to blend this improved software with snazzier hardware.
But I'll argue there's a better route for you to take, if you really want to K.O. the iPod: Hold off on the gadget. First, just launch the software.
I know this is a little counter-intuitive. People love gadgets! But hear me out.
 |
| Click above for Jon Fortt's interview with Michael Dell. |
If you want to compete with Apple in digital music, your biggest obstacle isn't the iPod. It's iTunes. Most of your target market already has iTunes installed on their PCs, and it's going to take a lot more than a shiny gadget to get them to ditch the way they've been managing their favorite songs. Of course, improving on iTunes is a tall order – it's the best thing out there for keeping track of digital media – but that's the game you're saying you want to play. If you can't figure out how to improve on iTunes, there's really no point in trying to beat Apple on the hardware front. Can't be done.
That's why I say you should just focus on releasing the best free music app you can (on Windows, Mac and Linux). Software is hard, so if you're going to give iTunes a run for its money, the project will require your full attention. You're going to need hardware partners like SanDisk (SNDK) and Sirius Satellite Radio (SIRI) to embrace your approach. You're going to need time to make mistakes. You're going to need customer feedback. But if in the end you've gotten enough people hooked on a new system that includes your wireless transmission technology, you'll have created a loyal base of users who trust you enough to ditch their iPods for your next great MP3 player.
Of course, you can ignore this, and maybe you'll manage to launch both a sweet music service and an iPod killer that both start grabbing serious share from Apple right off the bat. But the odds are pretty long on that. Microsoft (MSFT), Sony (SNE) and an army of other well-heeled competitors have been trying to eat Apple's lunch for years now, without success.
Their mistake, in my opinion: they tried too hard to match Apple in hardware design (which is hard enough), and they launched everything at once. In the process, they failed to focus on Apple's real soft spot: iTunes. Think about it: Even Apple didn't launch iTunes and the iPod at the same time. I was in the audience when Steve Jobs gave us iTunes in January 2001; he didn't call us to the Apple campus to show off the first iPod until nine months later. And Apple waited until April 2003 to open the iTunes Music Store. You've got to let these things stew for a while.
So anyway, Michael, thanks for sitting down for the chat. It was cool to see some of the new stuff you guys have coming out this year. And as a gadget guy, I do hope you eventually come out with some innovative music hardware that pushes the market forward. But just my opinion: That's a big job, so first things first. And the first thing is getting the software right.
Not much is more annoying than reading a fanboi article.
before Yahoo bought Music Match it was the best mp3 software out there.
As to the other comments about iTunes being better than … well anything, that is stupid. iTunes is bulky, not intuitive and forces you to a company that has problems all around.
I personally delete iTunes whenever I buy a computer from somewhere braindead enough to install it. It may have the "market" fooled that it is any good, but there are tons better out there.
Also it is dumb to approach something like this even as an iPod killer. iPod wasn't the first mp3 player and they ony gained popularity due to the manipulation that apple is famous for. Apple takes already establish products… dumbs them down so the masses likes them, then makes some elitist show of it, and says "haha we rule you guys suck" and all is done.
Feeding arrogance is all that comments like this article is filled with and the writer should be ashamed to have posted them out to the world.
For those who thinks Dell will keep selling crap, take a look at this:
This time the kid from Texas came up with something sexy, nice and still affordable.
A Portable Music Player of the like could be released pretty soon.
Beware Steve Jobs… Michael Dell might surprise you this time.
I think Dell realizes that they are not Apple and they will never come close. But they do realize that they need to be cool to keep growing their marketshare and revenues. And they are doing it. Green is cool and Dell is the greenest computer company on the planet; therefore Dell is cool.
When it came time to buy my son, who always used a Mac at home and at school and is now going off to college, a computer he wanted a Dell. Why? Because Dell has become a brand known for caring about the environment and social issues; and my son cares about those things too. He wanted a Product RED XPS 1330 Notebook PC because our purchase will help Aids victims in Africa and that model is beautifully designed and looks especially sleek in red. This kind of product marketing translates into being good for humanity, good for the earth, good for my son who is developing his values, and good for Dell. And all that, I would say makes Dell pretty cool.
DELL is wasting it's time and money trying to compete in this space, the battles have been fought and the war has been won. Just look at the list of companies with more money and talent that have failed against the ipod/itunes combination. What makes Michael Dell think he can do any better than those? And frankly, who gives a damn about another me too/media player gadget?
As an aside, during the O5 commercials, Dell should duly note the fact that:
a. Tying oneself to an increasing clunky MS offering (very slow and buggy, new found bluescreen avoidance aside) is not wise
b. Mac osX is based on BSD UNIX, i.e. open source
c. Their Aqua GUI is much admired
d. Users have ideals and are not idiots. Ultimately, computing is about automation and when they aren't being used as an entertainment box they should be completely controllable via voice, movement, and writing.
e. Now an obvious path through which Dell, with it's considerable resources, can compete with both Microsoft and Apple.
Fortt is very much right with regards to SW being the key, however I have to point out the HW manfacturers are uniquely positioned to design HW to mean the requirements of the SW and not the reverse. If you understand that, you understand Apple's success and can position yourself to design a competing strategy.
I want everybody and that means everybody, to be able to use computers effectively and productively. That helps everyone maximize their contribution to society their community which is ultimately what gives one a satisfying life.
You're wrong. He's wasting time trying to compete at all in the mp3 player arena. That's water under the bridge. In tech you must look ahead not back.
The answer is slapping everyone in the face, even if it is only by looking 1 year into the future rather than 5 years.
Personally,
a. he should clone the design of the MacBook Air (or whatever it's called)
b. make a few improvements HW wise, such as adding a Tablet PC interface
c. Installing an optimized version of Windows Vista Ultimate
d. try to find enough competent and consciencious developers (their aren't many, even the bad ones are in short supply) to clone the iTouch interface
e. Sell the 64 GB Flash version for $1000 & the 128 GB Flash version for $1500
f. QC control as Dell has forgotten to do (I know, I was burned by them to the tune of over $1000)
There you have it, small margins but massive sales enable hugh profits.
Frankly, as I've been burned by a Dell to the tune of over $1000 the first time I bought a PC rather than build it myself, that is the only thing that will ever have me consider from buying from Dell ever again. Period.
Dell is in bigger trouble than he realizes, he has to do something bold. Not something 5 years ago.
Dude! I'm NOT getting a Dell. Remember the irritating pitch guy from the Dell commercials? Well I think they would be better at bringing him back than to try get into the digital player market again. AND Mr Dell once told an audience at a huge event that if he was in charge of Apple he would sell it and just give the money back to the shareholders. HA HA HA HA HA! Maybe he should consider his own advice.
If anybody will try to compete against Apple, it’d be foolish to try it head-to-head. Apple has technology credibility, marketing money, enough media & public interest (whatever Apple does seems to be newsworthy) to grab publicity. A bit of an exaggeration: If Steve Jobs released an empty cardboard box as an innovative product, millions would be interested in it. So, Apple will probably beat any competitor in getting positive attention.
The clutter factor in mass media is hard to overcome. Even if Dell had just as much money to invest in publicity & marketing, Apple would break through the clutter more powerfully than Dell.
On an absolute basis, Dell could have a superior product, but more people may still accept Apple’s competing product. Dell could be successful in making & marketing a product tailor-made for specific people & maybe for specific situations.
The product may be fit for general use, but the marketing could focus on using it in specific situations.
Dell could try to create a less expensive product with fewer features & benefits—scaled down. It may appeal to those who can’t afford more expensive products. Others may not want or need a full-featured product.
Dell could try to create a more expensive product with more features & benefits—full-featured. It may appeal to those who expect more. A niche product could be more popular if it gave people something to brag about. If Dell starts now, the product could be ready by the time the global economy is strong.
Dell could try a full-featured product & a scaled down version. But its resources would be spread between them & may come up too short to break through the media clutter. A more focused—1-product—approach would probably be more efficient & effective.
Dell could create a parity product & try to compete but would probably fail.
Whichever route it’d take, it’d still compete with Apple to some extent.
Besides the marketing & publicity message clutter, there’s product clutter. Trying to market multiple products would add to & compete with the multitude of other products.
There’s limited shelf/display space. There’s limited “memory space”. Even a well-capitalized company would probably be better off trying to get people to remember 1 product & its benefits instead of presenting 2 or more products (choices) & each of their benefits.
A competitive solution could be: Find a different niche.
Here are some issues to consider:
Determine which people would want something different than what Apple offers.
At what age level do people want the product AND can afford it?
What are the best methods, times & places to reach these people?
Example- Let’s assume 12-years-old is earliest age when people have enough money & interest to buy the product. 1- They probably don’t own a competing product. 2- They may want something different than what teenagers own.
They probably aspire to be like teenagers, but they may not want to be exactly like current teens—carbon copies. If they believe Dell’s product is superior, it may help them feel more sophisticated, cooler & wiser than teenagers & adults.
Radio advertising probably wouldn’t reach them while they're in school, so the message should be timed for earlier &/or later. Later may be a better option since they may be able to go to a store after school.
They may want a bigger—more visible—product. If visibility is a benefit, they may want multiple colored faceplates to match what they wear & differentiate from what others have. If they’re concerned about the environment, they may want a smaller product without “wasteful” options.
It’s vital to determine who wants a similar product & who wants something a little or totally different.
Find out what they can afford & when—do they earn enough money or would they use gift cards to purchase products.
The Chicken & Egg Issue- What else do they need to make the product useful? Do they have these already or will they buy these later? Can the main product & accessory options be economically & practically packaged together? With music, it’d be hard to establish a definitive package for millions of people, but gift cards or subscriptions could be included so people can build their play lists.
If I recall accurately, millions of CDs were purchased in Japan before CD players were available. Consumers had enough confidence to think they’d like the players & the players would be available soon enough.
I’m sure Dell can effectively compete with Apple. But should it? Would its resources be better invested in other products? How much money & time would Dell need to achieve success? Can Dell afford it? Can Dell afford not to do it?
I think Dell is changing. Just brought my third dell (XPS) and love it. Lot of people ask me about it and can’t believe it is a dell laptop, even mac users. Dell has to keep focusing on design.
I have a 4g Ipod and am looking to upgrade for last six months. Didn’t like any mp3 player in the market. Here is the issue, all are closed systems. I think if Dell wants to compete with apple, they have to release an open system mp3 player. Let users build apps or modify and release their own version of software. Let it not just be mp3 player, but also a toy with lot of applications to play around.
Please don’t tie down the users, let us have freedom.
I have a Ipod and a Zen. I like the Zen much better. The only reason Ipod is stronger is the available accessories. Otherwise my zen is better in every way. Also…i use mediamonkey to sync both units. I never cared for itunes.
Oh, and since XM and Sirius are merging, convince them to add a couple "Audiophile" channels (perhaps one for each style of music) and allow owners of the New Widget to listen, stream AND SAVE these files directly via an inexpensive subscription service (add on–not required).
Someone else here hit on it–the audiophile market. Create a sleek, interesting device with a MASSIVE hard drive capable of storing thousands of high-definition, lossless songs. Partner up with Amazon's DRM-free shop, and charge a premium for it ($500?). Audiophiles by definition are not price sensitive. From a marketing perspective you promote the "High-Quality" of sound and make clever ads with "traditional music player" music sounding like it's coming through a pillow and the "New Widget" sound like it's bright, clear, and vibrant.
Combine this with WiFi downloading of songs and perhaps even a partnership with high-end audio supply companies (e.g. Shure) to maximize the benefits of high-quality earbuds, and you've got a winner. Hell, partner up with Shure and use their name and your components.
I hate to tell the fanboys (and I own a MacBook Pro and an iPod) but Apple is starting to cater to the mass market because that's where the money is. Dell should beat them at their own game–go high-end and co-brand with a better name (getting over the "I won't buy it if it's a Dell" concept) and you can win. alechemist@bellsouth.net
Tw comments about iPods, 1 good and 1 bad.
First, the bad. iPod's are not easy to set up. I am a follow-the-instructions type of person. iPod's are counterintuitive to the "step-1, then step-2" type of installation. Once it has been set up, an iPod is much easier to use.
Now the good. An iPod is cool. Just ask both of my daughters (11 and 15), who had MP3 players but now have iPods. They can download music using their iTunes card without having to ask Mom or Dad for a credi card. iTunes cards are available most anywhere, and iTunes has a great selection for music.
If Dell is really serious about mounting a challenge to the iPod, they will have to get really serious about music availability and the "cool" factor.
I used to work for Dell, but when the digital player plans where shelved (along with tv's, wireless components, services), I got my entire row converted to Ipods.
Mr.Binhammer-You and your cronies had better do more than "listen" to these comments.I dont know if have seen the "complaint" sites on the internet ,but i can tell you that it surely does not look good for your company.Your service is almost non existent and what service is there is far from quality.Your Dell financial services arm is probably your companies own worst enemy.Over the past 5 years i have purchased alot from Dell,3 laptops,3 desktops,laser printers,dell djs and dittys,a big tv,35 mm camera–you get the picture.Well DFS has dumped on me for the last time.i will NEVER be back to Dell because of your crappy service.My sister has always bugged me to get a mac,now im gonna.I know your company doesent care about MY business ,but looking around ,there is power in numbers my friend,and bigger companies have fallen because of arrogance.Dell is now getting theirs.
Hi,
The article is well written, but in my opinion it misses one thing: Dell does not resonate well with consumer market. People crave Apple products. When was the last time you heard somebody being excited about Dell, HP or Microsoft?
The problem with companies like Dell is simple: They go for a different type of customers. Dell, HP and MSFT are known for targeting enterprise and government accounts with something for home users on the side. Apple, on the other hand, is all about end consumers. Design and sexappeal of Apple products leaves very little room for competition especially for vendors that have been known for selling based on volume and price. That is why trying to go after an iPod is a lot like trying to be just like JFK.
If Dell wants to get ahead it should do one thing and do it right: Forget about competing with Apple's iPod. Guys from Cupertino have won this battle and the only reasonable thing is to retreat back and think of something new. Apple succeeded because it came up with a very good product that did not try to mimic anything else present on the market at that time. Why can't Dell do that? The world does not revolve around MP3 players and perhaps there is something else that Dell can succeed at. Or they can try beating Apple while Steve and Co. develop a new "the best thing" in town.
Ciao,
"Of course, improving on iTunes is a tall order – it’s the best thing out there for keeping track of digital media"
iTunes STINKS! It is the most invasive piece of software I've ever installed on a PC (worse even than most anti-virus system hogs). Moving files, renaming them! – geez, iTunes is absolutely terrible, unless all you do is purchase from iTunes. Aha! That's the catch. It's easy to build a better mousetrap than iTunes (manually using Windows Explorer is a better way to catalog your music). The hard part is getting a system where people can purchase songs and put them on their portable players.
We have been listening to the comments and really appreciate the feedback and discussion here.
Most interesting indeed and thank you for contributing your points of view.
Jon, overall, that was a nice article. The iPod's success is due to a combination of the best hardware and software along with the smooth integration between the two. You were right to point out that the focus shouldn't be simply on the hardware itself.
That said, many of the replies sort of hit the nail on the head why Dell's reentry would be DOA. To name a few…
Dell is essentially a commodity market player. If Dell isn't capable of beating Apple on quality. Their only hope would be price. That didn't work the first time and it's not going to work the next time. As others have suggested, only Rob Enderele would be dumb enough to think otherwise. Even there, he was paid to make such optimistic claims.
In the unlikely event Dell was able to put together software better than iTunes, why would people use it? It would have to be iPod compatible for most to even consider it. Again, that's not likely to happen. If have my library setup in iTunes, I'm not likely to duplicate that library in "DellTunes" just for fun.
As others have mentioned, the iTunes/iPod platform is a moving target. Microsoft has been chasing year old technology from Apple since the introduction of the Zune. The last iPod update made the Zune 2 DOA before it even hit the market. Microsoft also has much more experience with software than Dell does and they are still considered a joke by comparison.
Given the range of iPod models available, Dell would really have to differentiate it's product. If the iPod touch never existed, that might be the direction to turn a few heads. Only Apple knows what the next big thing would be with this type of device. However, it would have to be original and cool to be taken seriously. Another wannabe "iPod killer" will die a slow death.
If Dell really wants to ship a lot of MP3 players, they should go back to reselling iPods. Maybe they could license support and service to the Linux market?
To Richard Binhammmer of DEll on your comment below: If you're going to try to compete you'd better learn the products you're competing against. The photo is obviously an iPod Touch, not the latest iPhone. And yes that is a photo of Dell's old, discontinued player, but that failed device is all you brought to the table.
I have an apple and a Dell. I love them both – So im not just a fanboy. However, Dell needs to learn from the exciting ipod killer that was (wasn't) MS's ZUNE! Money and a little innovation wont make a brand make… Dell needs a game changer like what was mentioned in the article to even hope for a percent of the market.
It's not iTunes. It is the looks. Fad that iPod is. To beat it, you have to make a smaller gadget with more memory. Ofcourse, if you can offer it at half the price, you will own the market. The only person who can do this at present is Steve Jobs. Michael are you up to the challenge?
I listen to a LOT of music and the problem I have with iTunes is that there's no subscription option. Maybe other people don't download as much as I do, but I have friends who spend $40 – $50 a month on iTunes while I spend $15 on my Zune subscription. M/S and Zune may lack the cool factor, but if I download an album I don't like then I delete it and it costs me nothing but time. Besides the zune does its job and sounds good. Now that M/S has gotten the software right it's a great product.
Forget about the PC side of the software. Just use plain old USB mass storage. Don't even think about doing a DRM based music store. Instead partner with Amazon to promote their DRM free MP3s.
Instead concentrate on the PMP side. Build a device that has 160Gb or greater at less money than the iPod 160G classic. And then fund the Rockbox project to provide the software. Right now the 160G classic has zero competition. Got that? Zero. Your initial target market is the high end audiophile/music fanatic, not the commodity market.
Then work with Ubuntu to come up with a Linux based PDA OS that can jump from iTouch competitor to eeePC to mid sized laptops.
I think the best possible strategy for Dell in this case is to hire Rob Enderle as their VP for Product Design.
One way or another, that will resolve all their problems.
Why invent the wheel? Dell should just become an Apple retail partner, like Best Buy or others. It could carry the Ipod at their online store. Maybe Apple would even let them sell Imacs.
ITunes ain't broke, so Dell or anybody else isn't going to fix it. If they want to go into a new market, they should pick something that is less developed, and badly done in it's current incarnation. Then fix it.
No company can challenge the success of the iPod + iTunes alone. It´s not possible for MSFT, Sony, or Dell as single competitors. Perhaps the only chance for them or others is through a joint effort by several tech companies each covering every area in order to match the design, functionality, brand, hardware and software that Apple Inc. delivers. The problem for Dell to enter this segment is and will always be its brand. Toyota created Lexus when they realised its brand was not made for an upper segment. Nobody relates the name Dell with innovation or taste.
I'm sorry. I follow the logic in taking a software first approach and then bringing the hardware in second. But for many users like myself who have already adjusted to iTunes, why would we change? If it aint broke, don't fix it. iTunes has already mastered the software end of the business and quite frankly I don't think anyone would transfer to another software. iTunes is simple, user friendly, and offers everything you need to engage in the digital media world. Unless Dell is offering free downloads, I'm going to continue using iTunes.
Give the end user some reason, some big improvement or offering that will entice people to transfer over.
I don't think it's fair to characterize Dell as an old company with zero creativity/innovation. They set the bar for the on-demand, customized PC direct selling model. That takes a lot of creativity and innovation to make that work in a cost-effective way. All others follow in their footsteps in this regard. Rather than compete with Apple (or Sony or Microsoft) on design, why not capitalize on your core strength and pioneer the process of building and delivering an on-demand, customized personal media player. Gadget forums are filled with comments of "I'd buy it if it only had feature x." Dell understands this in the PC market. Use that same creativity that made you the #1 PC seller to give users not only "a" choice, but rather "their" choice.
Rebate program with every computer sold. Start giving them away or selling at cost. If its a good product, it could catch on. I am ready to buy a new player but I am shopping around for it. My last Ipod lasted 4 years.
Dell is looking to get into the digital hub, yes, the concept Steve Jobs iterated in what seems like a decade ago, in order to compete with HP and Apple. Of course Apple is already there, and HP has been working on their digital hub in its successful series of "headless ads" with Jerry Seinfeld, Serena Williams, etc.
Their strategy isn't about beating the iPod, but having a stake in the larger game of controlling the media of the connected home.
The Apple fanboy comments are tiresome. I actually thought the idea of the Zing software has merit. But I have to give a gut reaction to Binhammer's response, assuming he's from Dell. He said he wants to make an alternative to "the closed, single device, single service model currently available", presumably referring to Apple. That sounds like marketing speak to me. Mr. Binhammer, you would have to give a reason why one would automatically want to chose a different model. The single service model works pretty well for Cable tv, for example. Telephone company provided tv is an alternative, but it's a single service model too (most people don't get both, and each by themselves provide all the service). Applications on cell phones are fragmented in terms of market share, making it difficult to make money writing them, and every time the consumer gets a new phone, your old programs often won't work. One explanation for the continued overwhelming success of iPod/iTunes is that it reliably and easily provides everything most digital music consumers want.
So where is the "value added" component to your model? This is not a sarcastic question. I am interested in the answer. It would need to be fairly compelling for people to move away from the single service Apple model.
1. Dell's brand has suffered through non-trivial quality issues with its laptops. They should concentrate on restoring confidence in core business.
2. I think it's probably too late to make a serious dent in the iPod world. Too many sold, cool factor firmly established. I can't see someone replacing an iPod with a DellPod, no matter how good, unless his/her iPod broke. And how big is the residual market, anyway? SanDisk and other Asian concerns have produced low-cost products that haven't taken hold.
3. But I agree with the idea that tackling the host software first is a solid strategy. The question is whether Dell can develop, deliver and sustain/support such a software product.
But all-in-all, Dell should spend R&D money trying to do something different. I think they're like a dog in a sled team on this. When you're not the lead dog, the view (and smell) never changes, no matter how fast you run 
Richard Binhammmer,
Hope you are reading some of the comments on this thread about how people are reacting to the Dell Brand.
True, some of the comments maybe coming in from Apple Die Hards, but the picture is certainly starting to develop. Dell is increasingly becoming an effete brand, which does not resonate with the youth of today….
The iPod Touch as the prestige iPod will be nearly untouchable to the likes of Dell. iTMS and the App Store have already seen to that. If the Touch were to be equipped with a microphone, 64 GB of memory and a front facing camera for the price of $300, it would be devastating to every PMP around as a internet browsing, video viewing, music playing, social networking, gaming demon device. Nothing else would even be close.
Dell should just stick with improving its computers and work on that tell it gets it right. Nicer designs, more features and maybe better customer support.
Does anyone at Dell realize that Apple has moved on? The iPod Touch is the future, not another MP3 player! With the Touch you can listen to music, surf the full Internet, watch movies, get email when using wifi, check stocks, look at maps, and on and on and on. The iPod Touch is the future. It's a superb solution for someone who can't afford an iPhone's ATT contract.
The game is over for Dell if they have not realized that they need to go above and beyond the Touch.
There are two challenges facing Dell and the first is strategic and the second is technological innovations. If Dell is just out to sell yet another device, it will doom to fail again. What is the overall strategy of Dell? What does it hope to accomplish after this music "service" is published? What are the next series of steps? What is the strategy?
Secondly, Dell is not an innovator. It is basically a custom manufacturer of PC boxes. It lacks real in-the-trench advanced software technology experience in its management ranks. Anyone can make a website, anyone can do Java and Web 2.0 mumbo-jumbo, the question is how good will it be? Again, the "good" will be dictated by the vision of the company and that vision drives the product strategy.
While I will never look down on any company's potential to do good things, there is really no confidence that Dell can really compete effectively in this arena until it has defined its vision and assemble the pieces necessary to start implementing a systematic product strategy towards that vision. ANything less is just a waste of money and effort.
Sigh, Dell has never grasped the Apple magic and you haven't either. There's a New Buying Paradigm in genY that has spread rapidly to older demographics. Your approach centers on the classic error of companies: skating to where the puck used to be. The music needs of the audience are adequately fulfilled by the iPod/iTunes, no similar offering will do more than scrape a few percent of the market at low margins. Dell needs to look at what the current life goals are in people under 30 and offer something that gets them to that attraction. Chasing the iPod is EXACTLY like chasing the train that has left the station. It's hard to do, the only people who will rationalize it as being a good idea are idiots like Enderle, and even if you meet all your goals, they are the wrong goals and the consumers will have moved on. For more on genY, visit: http://www.employcriteria.com
Well written article. It was very well though and does seem like the strategy to take when dealing with a company that has such a stranglehold on the market as Apple does. As you said, many others have tried and failed and this very well may be because they did not take an approach as you lay out here.
I myself use an iPod and iTunes because they are so easy to use. However, I would love somone else, be it Dell, Microsoft, Sony, whomever, to break out with something that would give the iPod and iTunes a run for its money. That would encourage better products and better services through tough competition where only the consumer can win.
There are too many out there that read an article that says something about Apple and they are quick to look at the logo they have branded on their forehead to realize what would be good for the consumer.
Can Dell do this? Base on recent history, one would have to say very unlikely, but I would love for them to pull something like this off.
Genius, truly.
So smart that there's no way he would listen. You can see by the old player that they have zero design sense at Dell, too. Design is important in Software, not just Hardware.
As long as they continue to put that ugly DELL word on portable products, they will fail. Might as well say Radio Shack. Hideous.
It's funny that a journalist can deduce this smart launch plan, and nobody in decision-making at Dell will come close…
In my opinion you've got it exactly backward. How could Dell possibly hope to gain traction by trying to get people to switch to new software, while they are still using their iPods? The new features coming require tight integration of hardware and software.
I do agree that they need to do extensive testing and make sure that the kinks are fully worked out before launching though. And the goal shouldn't be to be an iPod killer just yet, the goal should be to solve a problem that the iPod/iTouch/iPhone can't do, do that one thing very well…and then grow into the areas that the iPod does well.
Hi Jon
Thanks for the feedback. We are listening. Worth noting your picture is an 3-5 year old device we no longer make and what appears to be the latest iteration of an Applie iphone. Not quite fair side by side graphic illustration.
As has been pointed out elsewhere, we are not really looking to launch a device, rather we are looking at how best to let customers access whatever entertainment source they want on whatever device they want, while also personalizing the customer experience, akin to your thoughts about software. Very much like our computers are personalized to individual specs–an alternative to the closed, single device, single service model currently available.
Stay tuned and thanks for the feedback
From Jon Fortt: Sorry if the photos seem unfair. I tried to make the context clear in the text. And this is the first I'm hearing that you guys aren't looking to launch a device, though I had seen coverage of the service/software component as well ….
iTunes isn't the reason that Apple dominates the MP3 market. It's because they're MP3 player is superior to others on the market. Dell isn't going to beat Apple my making a cheap gadget knockoff AND a cheap music store knockoff.
Nothing against Dell, but with the moronic Robert Enderle advising, it doesn't matter how long they leave this misadventure in the oven; it'll still come out half-baked.
Dell does create anything or invent anything. They purchase technology or just put there name on someone else's technology. There is no creative thinking at Dell. They are just another cheap PC Company.
Jon,
I have to disagree that iTunes is "…the best thing out there for keeping track of digital media."
There are only 2 things I like about iTunes: 1) the iTunes Store. Apple has access to a much more extensive collection of music, videos and digital media than any other service I've found. 2) Burning to CD with the option to add "CD Text."
As for organizing and managing content on my PC, I find iTunes lacking. While it's not perfect, I actually prefer Microsoft's Media Player 11. From my experience, MP11 actually does a better job of sorting/collating music and videos by artist or album than iTunes.
I agree though that Dell's first task shouldn't be to put another gadget out there to compete with the iPod… already enough of those.
The problem here is that Dell has NEVER been an innovator, neither in hardware nor in software. They've never made anything better than anyone else. Their goal has always been to undercut the other guy. So now they want to "create" something to beat the iPod. Not a real good chance there, fellas.
I couldnot stop laughing reading this article. DELL? the bin o parts computer company with the absolute worse service outsorced to india beat Apple's Ipod? This guy is either a shill for dell, insane or on heroin. Dell is a crumbling, thoroughly hated company. What a laughable article.
It can't be done by Dell. This is just Dell chasing the white whale of the technology sector. Dell has no hip appeal, and it's reputation for using 'Bob brand' components in it's machines doesn't help either.
Apple is as usual one step ahead of everyone else. The ipod is going to be replaced by the i-phone and that of course is going to continue to be serviced by iTunes. So think about developing a phone Mr. Dell.
To Ben,
Settle down dude, relax, take a deep breath…Don't be so angry. Life is short. Spend time with your family, enjoy the nice weather. Why are you so angry anyway? Did you get fired from the Apple store or something?
Now about the article, please provide examples of better alternative to the ipod and itunes. I'd love to know about them and try them out. thanks