Michael Dell Is No Iron Man

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It's a bird. It's a plane. It's a preposterous theatrical tie-in.

Marvel Entertainment's (NYSE: MVL) box office smash Iron Man hit retailers yesterday. You can pick it up on DVD, stream it through pay-per-view, or have it pre-loaded on your new Dell computer.

Yes, Dell (Nasdaq: DELL) is teaming up with Marvel to offer buyers of select PCs and laptops the superhero flick pre-loaded into their new machines. It's a $20 add-on purchase, which is strange because you'd think Dell would stomach the cost to move more computers.

It's also odd given the limited shelf life of a hot DVD release. Iron Man is a great movie, but what will Dell do for an encore next week when You Don't Mess with the Zohan comes out? Indiana Jones and the Kingdom of the Crystal Skull hits the market in two weeks.

Iron Man fans -- at least those willing to pay $20 for a PC-tethered version -- probably either bought their DVDs yesterday, or had it pre-ordered last month. Besides, it's not as if Dell's putting out systems in crimson and gold to give this more than a half-hearted promotional push. It's a neat hook, but one dangling in an ultra-short fishing season.

Marvel is making the most of Iron Man's success. It rolled out retailer-specific editions yesterday, exclusive to chains like f.y.e. and Circuit City (NYSE: CC). That's great. It gives retailers incentive to actively promote their exclusive versions this week. I just don't see it as a game-changer for someone looking to make a computer-buying decision.

Is someone really straddling the fence between Dell, Hewlett-Packard (NYSE: HPQ), and Apple (Nasdaq: AAPL) to the point where a pre-loaded film will seal the sale for Dell?

"By getting your content preloaded, you can start enjoying your favorite movie as soon as you get your new Dell without the hassle of searching for and downloading your content, saving you time," reads the Dell website pitch.

Really? Maybe my unboxing experience is atypical, but I usually just want to get cracking on making sure I get my own programs into a new computer first. No offense, Tony Stark.

I'll give Dell points for trying. This is a novel way to get the word out on digital celluloid delivery. That's it, though. Stark may be described as "a cool exec with a heart of steel" by Marvel, but Dell CEO Michael Dell will have to make a few more turnaround moves before he earns a similar distinction.

Other superhero headlines:

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Longtime Fool contributor Rick Munarriz won't be Iron Man for Halloween, though he really enjoyed the movie. He does not own shares in any of the companies mentioned in this story. The Fool has a disclosure policy. He is also part of the Rule Breakers newsletter research team, seeking out tomorrow's ultimate growth stocks a day early.

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  • Report this Comment On October 02, 2008, at 10:22 AM, StocksBuyorSell wrote:

    I agree, that it probably won't influence many buyers. Dell needs to add real value and innovate - like Apple is doing - not look for stupid gimmicks to sell more machines. <a href="http://stocksbuyorsell.com">Stocks</a>

  • Report this Comment On October 20, 2008, at 4:40 PM, gARENCE wrote:

    Bought a Dell Computer? GOOD LUCK!

    Dell was found guilty on May 27, 2008 of fraud, false advertising, deceptive business practices and abusive debt collection practices in a case brought by the New York attorney general.

    The Albany County Supreme Court found that Dell deprived customers of technical support that they bought or were eligible for under warranty in several ways, including by requiring people to wait for very long times on the phone, repeatedly transferring their calls and frequently disconnecting their calls.

    Dell also often failed to provide onsite repairs for customers who bought contracts for such support and often blamed software when hardware was actually the problem, the court found. The company also sometimes refused to offer support when a support contract ended, even though the user had first complained about a problem before the end of the contract. Subscribers to a "next-day" repair service sometimes waited as long as a year for support, the court found.

    Dell and affiliate Dell Financial Services also advertised special no-interest financing, but denied almost everyone those terms. It often sold customers products without informing them that they didn't qualify for the special financing terms and then charged them interest rates as high as 30 percent, the court said.

    Dell and DFS also often incorrectly billed people for cancelled orders and for accounts they didn't authorize. The companies then harassed the people for payment, using illegal billing and collection practices, the court said.

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