
Linux PCs Discontinued at Wal-Mart Stores 278
eldavojohn writes "The $200 Linux PCs discussed earlier last year have been discontinued for sale at Wal-Mart's physical locations, though they will remain for sale at walmart.com. All this despite the systems repeatedly selling out. From the article, 'Paul Kim, brand manager for Everex, said selling the gPC online was "significantly more effective" than selling it in stores.'"
Re:Microsoft Bribe? (Score:0, Insightful)
Re:No worries, mate (Score:4, Insightful)
More importantly though, part of the money you're paying to replace Vista with Ubuntu goes to Microsoft, which allows them to further their monopoly. Do you really feel good about doing that?
Re:No worries, mate (Score:4, Insightful)
You're right about that being the cheapest way to get a linux machine. I think the objection to that would be on principle more than anything else -- people won't want to pay the Vista license fee if they're not gonna actually use Vista. In fact, if you're trying to get value for money its a little annoying to know that your PC could have been cheaper if you didn't have to pay for s/w you're not going to use.
It's important to note though, that users do have a choice in the matter (buying the gPC in the store/online - and now just online). If Walmart decided to discontinue it because of the lack of demand, that's fair game. If Walmart decides they would rather install Vista on everything rather than the hassle of having seperate SKUs (with Vista/without Vista) - that's fair game as well.
A thought (Score:5, Insightful)
In any case, I think part of the problem is that most people I know wouldn't envision Wal-Mart as a PC retailer. Be it my computer-illiterate neighbor whose spyware I'm constantly removing or my grandparents who only use their computer for occasional e-mail, I'd bet the majority would go to an electronics store like Best Buy or Circuit City over a general retailer like Wal-Mart for a purchase that big. Wal-Mart may not be a bad place for cheap groceries or clothing, but the employees there won't know jack about the computers they're selling...and even if that's also true at the local electronics chain store, the perception that they know at least something about computers can make all the difference.
Re:Normal (Score:5, Insightful)
Re:Normal (Score:5, Insightful)
More importantly, at $200 for a PC, it's profit margin had to be quite a bit lower than any of those things. I'd bet that even selling like hotcakes it would be one of the least efficient items in the store, in terms of profit per square foot.
Re:Once again... (Score:5, Insightful)
No. That would be the Walmart management that prevailed. Walmart don't care if those Linux systems sell out all the time, because selling these systems in preference to a Windows PC ends up costing them money.
While the Linux users are off using apt-get to download all their packages, Windows users have to return to the store to buy their Anti-virus software, Office packages, games etc. Windows users will continue to generate income long after they have got their neighbor's kid to setup the PC for them.
Sure, there are some Windows users who know about all the free software available for that platform. These people won't generate any extra income for the retailer, but they would not have anyway, so they are out of the equation.
Finally, I have always wondered how many returns they get from people who thought that the computer was faulty because it would not run all their software they already owned. It is possible that Walmart wants to avoid losing good will of their less technically inclined customers who think that they are selling broken PCs
"Repeatedly sold out" doesn't get cancelled. (Score:2, Insightful)
The "repeatedly sold out" link is a little misleading, too. It isn't exactly a solid list of endorsements -- well, it seems a lot of people bought it and then promptly returned to the website to bitch it didn't come with Windows. In short: it flopped.
I do have to wonder -- and this will certainly invite some livid replies -- solid engineering is great, but I always seem to get the sense that solid marketing and solid sales practices aren't valued in the same way by the F/OSS community, and if it doesn't fail to gain them any ground, it might actually hurt them, as well. I mean, that stuff doesn't have value because people like wasting money. Packaging and naming and charm and all of that has value. WTF is a gOS?
Re:No worries, mate (Score:2, Insightful)
That way , there's no license costs , i know what i'm buying , and it's a lot cheaper in total .
Re:No worries, mate (Score:5, Insightful)
Are you willing to buy it back from me for the price I gave if one or more of its peripherals has no good Linux device driver, where by good I mean having speed and feature parity with the Windows driver? Are you willing to send me the cost of Windows, so I don't have to pay for something I don't want?
Actually, never mind--even if you're willing to do that, some of my money would be going to MS, and I will not do anything that benefits MS.
Re:Normal (Score:5, Insightful)
Re:Once again... (Score:3, Insightful)
Re:Once again... (Score:5, Insightful)
They only stopped selling them in stores, which sounds to me they will still offer them online.
It seems it was not that much of a non-viable business decision; it merely suffered from anomalies.
Low-end Linux PCs are a rather non-standard item, and my best guess is that most people who'd bought them were geeks who'd wanted a cheap Linux toy. Or to give a computer-illiterate family member a low-end computer.
And they bought them online.
Thus there was a significant disproportion in the numbers of sales — most units were sold online, so of course the execs deemed the online market more profitable for this kind of article. That may prove to be a misguided long-term decision, but it makes perfect sense in short term.
Its called shelf space (Score:5, Insightful)
Remember back to the stories about Wal-Mart's push into CFLs and how the person at Wal-Mart pushing these had to make a case to get shelf space. They had to present a case and prove themselves.
Re:Once again... (Score:5, Insightful)
lets see
1 insult Walmart management
2 add slightly insightfull comment on-topic
3 imply consiracy against Linux on the desktop
4 insult stereo-typical Walmart customers
5 complain about M$ patented technology
6 get +5 insightfull mod woohooo
Re:Once again... (Score:5, Insightful)
They also could have gotten in 5 units and sold 5 units in a single day... not. Because if that were the case they'd keep selling them. Or they could have sold 5 and gotten 4 back once the user found it couldn't run Word and most games, which I could attribute to "This really wasn't what our customers were looking for..."
But the lead says it best. "Computers that run the Linux operating system instead of Microsoft Corp.'s Windows didn't attract enough attention from Wal-Mart customers, and the chain has stopped selling them in stores..."
Re:Normal (Score:3, Insightful)
Re:A thought (Score:2, Insightful)
Anyway, the machine wound up sitting around for awhile becuase he wasn't really that interested in using it.
Then I did a truly evil thing, I borrowed it for my brothers use because his Emachine died (again), so we loaded Windows XP SP2 on the walmart box. This was also disappointing, it took a few tries and the limited resolution relative to the Emachine bothered my brother, he's non-tech and thinks I can fix ANYTHING.
Recently I reloaded it again with Ubuntu because I am completely sick of the windows "refresh" cycles and didn't think it would improve the situation on this box anyway.
I did have problems getting the install to complete, the cd-drive is buggy and sometimes just stops responding, but eventually I prevailed and the machine runs much better with not a crash yet that I know of. It does have an annoying screen flicker from time to time, but again the hardware itself is questionable in a number of areas.
In short the distribution they chose was lacking, and the hardware is barely passable, but under Ubuntu 7.10 it has become a usable machine.
I would not however recommend this particular box to a newbie because of all the difficulties GETTING it to a stable state (note that applies to it running windows as well).
my $.02
Re:No worries, mate (Score:1, Insightful)
Re:No worries, mate (Score:2, Insightful)
McAffee/Symantec/etc paying $X to put the 30 day trial antivirus on there (hoping to snag a $X/$Y/$Z annual fee).
Aol/PeoplePC/etc paying them $X to put their free trial on the computer (again, hoping to snag a $X/$Y/$Z monthly fee).
Adobe paying them $X to have reader preinstalled with adverts to 'upgrade' to acrobat for $X.
Real paying them $X to have their av software installed with adverts to 'upgrade' to the pro version for $X
etc, etc, etc
If all those companies paying them money bring in more money than a licensing cost for windows, the windows computer will be cheaper.
If you can get companies to subsidize a 'linux' computer, you would have a cheaper computer that way too. But I don't see it happening.
Re:No worries, mate (Score:2, Insightful)
Did you let them know why? It is a good idea.
Re:Once again... (Score:4, Insightful)
1) PCs are a commodity business. You don't stick around selling 3 of them in a month.
2) If you're making $1000 off of 3 PCs, I want whoever your marketing guy is.
3) Wal-Mart doesn't order things in 50s. It orders them in thousands.
4) TFA clearly states that Wal-Mart repeatedly sold out of the machines.
Put it together. Wal-Mart has sold thousands of these machines out repeatedly- which means that it has a product whose supplier cannot meet demand. If you're a company that size and want to lose a lot of money, the way to do it is to have to deal with somebody else's god awful supply chain.
Walmart? (Score:2, Insightful)
For example, if WM is unable to sell 100% of the product, the vendor has to buy the difference back (via store credit). Or if WM sells the product too quickly, the vendor has to be able to meet the demand. If Everex has problems meeting the demand of the supply, WM may choose to pull that product from it's shelves.
WM's press release may have very little to do with the real reason it was pulled.
Interesting WM story: http://www.fastcompany.com/magazine/77/walmart.html [fastcompany.com]