What can Dell do with Linux? Nothing


Dell Inc. (NASDAQ:DELL) says that its virtual suggestion box is filled with people who want to have Linux on their PCs. Perhaps consumers and enterprises think they can save money compared to using the Microsoft OS.

Linux is still Windows for dummies. A look at a well-developed Linux desktop product like Linspire demonstrates that the spreadsheet, multimedia, and word processing features are either missing or aren't very robust. Interacting with Microsoft software is possible, but not easy. The high end product is just under $90.

Dell is going to find that offering Linux is not going to reverse its market share loses against companies like Acer and Hewlett-Packard (NYSE:HPQ). The fourth quarter of 2006 shows how badly Dell has slipped.

Investors have to expect that price is the key issue with most corporate and consumer purchases. And, many machines from companies like HP are available in stores where customers can actually give them a try.

The "to do" list at Dell ought to have Linux at the bottom.

Douglas A. McIntyre is a partner at 24/7 Wall St.

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