System Builders Expect Lift From Dell Recall

Dell's misfortune continues to be system builders' good fortune, attendees of D&H Distributing's New England Summer Show in Quincy, Mass., said on Tuesday.

Several system builders cheered Dell's recall of 4.1 million notebook batteries because they present a fire hazard, claiming that the notoriety brings them more opportunity.

"It's definitely a feather in my cap when something like this happens to Dell," said Jeff Salmeri, president of Computer Escape, Randolph, Mass. "That's something we can use to our benefit, especially this time of year, when notebook sales are up with kids going back to school."

Salmeri said he has seen an increase in sales of his own whitebooks to college students looking for higher-quality products. "It's nice to see what we've been telling customers all along has come to fruition," he said. "Batteries on fire and expensive notebooks are good for me."

Tim DeKorne, business manager at One Second Computers & Communications, a Dover, N.H., system builder, pumped his fist in exultation after someone mentioned the Dell battery recall.

"We're in competition with Dell," DeKorne said. "Unless you want to join them, this is good news."

DeKorne called Dell's reseller program "bogus" after he was put off by the computer giant's lackluster channel offerings when he inquired several months ago about a possible partnership. He said he was told that Dell would dictate his margin and not let him use the vendor's logo.

"That's 90 percent of why I wanted to [partner with] them in the first place," DeKorne said.

Some solution providers said Dell's battery recall could have broader ramifications in the channel, especially if customers think that other vendors' notebook batteries could be affected too. Tier-one PC vendors often source components from the same Asian manufacturers.

"Everyone in my office was talking about it this morning. We're checking on our Acer business," said Alain Bezahler, president of Boston Computer and Peripherals, Sharon, Mass. "While it's nice to see [Dell] stumble, it may not be without fallout for [other vendors]."

Added John LoConte, co-owner at KDSA Consulting, Andover, Mass., "It's not good for the industry as a whole. You want to beat people based on what you do, not on them failing."

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