Welcome to the Daily 5, our "Foolish" look at the business news that amuses us.
Dell (Nasdaq: DELL ) and Wal-Mart (NYSE: WMT ) are hooking up -- again. Last year, the Bentonville behemoth said it would sell Dell's PCs through 3,500 of its locations. Now, The Wall Street Journal reports that Wal-Mart wants its partner to service computers sold through its stores.
Why do this deal now? Perhaps because Dell is tired of watching Hewlett-Packard (NYSE: HPQ ) pack in the profits as Apple's (Nasdaq: AAPL ) Macs perform a market-share land grab. But we have less likely (OK, not-at-all likely) ideas of our own. Here are the top five reasons Dell and Wal-Mart are hooking up. Drumroll, please:
5. Because Dell needed a deeper bench to take on Best Buy's (NYSE: BBY ) Geek Squad in corporate softball.
4. To remedy a color forecasting mishap: Where else can Dell dump all those "safety orange"-colored PCs?
3. Because Dell's still smarting over Dell Dude's drug bust -- and no one's cleaner than Mr. Smiley Face.
2. Why go to India for cheap labor when it's right here in the good 'ol U.S. of A?
And the No. 1 reason for a Dell-Wal-Mart hook-up ... Three words: Michael Dell, greeter.
Geek Squad, meet Cheap Squad
As odd as this deal strikes us, we actually like it for two reasons. First, Dell has little retail experience (ergo, not much chance of beating Apple as a seller of upscale wares). Second, Wal-Mart once wanted to be your bank. PC service is much closer to its retail roots, and here, a partner is providing all the expertise. Eat that, Best Buy.
See anything we missed? Have a different take? Post your thoughts in the comments box below.
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