As of last week, Dell announced that it will cut back on mail-in rebates and make sale prices more accessible to customers after complaints that the procedure for receiving the sale price was too complicated.
Analysts believe this will help boost Dells customer relations but not necessarily its sales. Dell, the worlds largest personal computer maker said that product prices will stay the same.
Dells sales have been down in recent quarters with tougher competition from their number one competitor Hewlett-Packard. Dell which sells directly to customers through the internet and via phone has had complaints of their poor after-sale performance. In the early 90s Dells percentage growth was much higher and analysts wonder if Dell can once again reach these numbers.
An analyst with Cross Research says, “Dell is facing a lot of challenges. HP is just reinvigorated, which is one of their biggest problems. Their competitor is back.”
Dell shares ended down 68 cents, or 3 percent, at $21.70, more than the Merrill Lynch Tech 100 index’s (^MLO – news) 1.6 percent fall.
Dell anticipated a reduction of approximately 70 percent per...
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