Where's My Dell Ubuntu Linux PC?

I'm still bullish about Dell's (DELL) long-term prospects. But short-term, I'm starting to wonder why it's taking Dell so long to fulfill orders for the Ubuntu Linux PCs the company introduced in May.

Are the systems fully tested? Does Dell have enough components on hand? Frankly, I'm not sure. But ultimately, it looks like it will take Dell three weeks to build and ship an Ubuntu Linux PC to me. Not terrible. But not exactly a rapid supply chain for the king of direct PC sales.

Here's the background: I ordered my new Dell Linux PC during Memorial Day Weekend (May 26-28). Originally, Dell informed me the PC would likely ship by June 12. But when I logged into Dell's Web site on June 12, I noticed two issues: A strange alert and a shipment delay.

First, the online alert stated: "The [Dell] system is undergoing routine maintenance. Please check back in a few minutes." So I did. Here I am 24 hours later, and that same note is displayed on the Dell online order system. Messages like that don' make customers feel very loved.

To Dell's credit, company bloggers have been informing customers that they are investigating the maintenance issue. It seems like Dell is really listening and reacting to the blogosphere. Kudos, Dell. You can find one of Dell's comments over at the AllAboutUbuntu.com blog.

Now for my second concern. I drilled down into my order status on Dell's Web site, and the estimated ship date for my PC is now June 19 -- rather than June 12 -- or roughly three weeks since I placed the order.

It's not a huge deal. I'm not depending on the new PC to run my business. Instead, I'll be testing Ubuntu as a lower-cost alternative to my trusted Apple (AAPL) PowerBook. But the extended wait for an Ubuntu Linux system from Dell seems a bit, um, strange.

I remain long on Dell, and continue to believe in Michael. But it seems even the most basic process at Dell -- building a new PC to order -- requires a little bit of polish.

Disclosure: Author has a long position in DELL

Comments

[jbs:]

I've installed Ubuntu on several Dells. One of the major downfalls has been proper hardware support. Enabling wireless networking (usually) requires the use of driver wrappers (ndiswrapper to be precise). As another example, Xserver usually requires tweaking to enable widescreen and dual-screen setups. Without these tweaks the screen is stretched or doesn't utilize the whole monitor.

I imagine the delayed rollout is partly attributable to Dell's desire to ensure that the hardware is supported by the OS. They will also need to train support staff on how to address some of these issues.

So it comes as no surprise that it is taking a little bit. I just hope that Dell is adequately prepared once these PCs are sold. And I guess we'll see if the delay was worthwhile.

2007 Jun 14 10:51 AM

[sleepy:]

I'm exaggerating here a little, but Dell's a logistics and finance company that borrows huge amounts from the companies whose products they deliver, exploiting the misconception that they are a computer company. PC prices for a given configuration fall much faster than average selling prices (which include constant spec improvements). By delaying shipment for 3 weeks after you place the order, Dell gets an aveerage 2-3% extra margin, and also fine-tunes supplier credit for their own convenience.

Increasing the delays increases margin. It also reduces current quarter unit sales. Dell is offsetting this by filling a new sales channel ( Walmart / Sams) in the same quarter. The overall effect being to artificially boost the figures for one more quarter. Don't be fooled; there's no sign of a turnaround yet.

2007 Jun 14 11:27 AM

[RichardatDELL:]

Hi Joe

Your order is scheduled to ship today and I have a fedex routing number if you want it. Sorry for the delay

2007 Jun 14 01:36 PM

[Malkiel:]

[I think they heard you :)]

2007 Jun 14 04:36 PM

[Joe Panetti...:]

Well, the good news is the system has actually shipped. (Thank you for the update, Richard.) I've updated my personal blog over at TechIQ magazine to let readers know the system is nearing my office.

But I wonder how things are going within Dell. This particular order was not a train wreck. Just a small delay. But in the world of instant satisfaction during a visit to the Apple Store, I wonder how Dell will continue to enhance the customer experience -- whether online or at Wal-Mart ... ... ...

I'm fortunate that I'm in a position where my company purchased the Apple MacBook for business use and I was able to spend my own dough on a Dell/Ubuntu system for personal use. For me, it wasn't either-or. And I didn't require a rush delivery.

I have to admit: I'm dying to know if Dell is experiencing stronger-than-anticipa... demand for the Ubuntu Linux systems. Or are people like me spending far too much time writing about a niche product that will represent fewer than 1 percent of Dell's consumer PC sales for the foreseeable future?

I suppose we'll have our answer in a few short weeks. If sales are strong, it's safe to bet that Dell will issue some sort of press release recapping initial sales over a 30, 60 or 90-day period.

Cheers,
-jp

2007 Jun 14 04:55 PM

[RichardatDELL:]

Joe

dont think the demand has been stronger-than-anticipa... although it has been solid.

2007 Jun 15 11:04 AM