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Local vendors fume over Dell advertisements

US-based Dell Computer Corp. has raised the hackles of local computer vendors by taking out advertisements in this newspaper selling its products. Consumers here can telephone a toll free number (1-800-342-0671) and order computers directly from Dell. While you will have to pay shipping and about 33 percent duty bringing in a computer, consumers can save anywhere from ten to 30 percent on prices charged here according to a local computer consultant. Local computer vendors are not amused by the ad and have complained to the Finance Ministry.

Is Dell doing anything illegal by selling in the local market? A Ministry of Finance spokesperson says Government is waiting for legal advice before addressing the complaints. So the answer is Government doesn't know yet. It's a grey area.

The question is should overseas manufacturers be allowed to advertise locally products that can be shipped here? While local companies have managed to hold down a market share through being licensed as authorised dealers with overseas computer manufacturers, those arrangements have broken down over the past four or five years. Consumers can now telephone and buy directly from the manufacturers' warehouses themselves in many cases. In some cases, where a product (usually laptops) has a worldwide guarantee for example, local retailers with a licence from a manufacturer cannot refuse to service machines bought outside of Bermuda.

They may attempt to refuse such service but a simple telephone call to the manufacturer will fix such stupidity. However computer manufacturers are slowly phasing out worldwide guarantees. The advantage you get from buying here is a guarantee to get your computer fixed here without paying shipping charges. If you buy a computer overseas and it goes wrong you could lose any savings by paying shipping charges to send it back for repair.

The telephone number Dell gives refers to its Latin America sales outlet. The outlet says service on the machines sold to Bermuda will be provided by a local retailer. Bermuda Microsystems is the authorised Dell reseller on the Island. What's not known is whether Bermuda Microsystems is getting a cut on the sales.

Local vendors want a level playing field. If the Dell ad is legal then the manufacturers they have arrangements with will beef up their presence in Bermuda through direct advertising and other investments. One computer vendor said consumers and businesses will benefit through better service and support.

If that's so then let's allow Dell advertisement. Lower prices -- if that follows -- will allow more people to afford computers. The knowledge base of the Island will be raised and this will help boost the sophistication of the labour force and help make Bermuda more competitive as a jurisdiction.

Before you rush out to buy Windows 98 take a word of advice from PC Magazine which completed an analysis of Microsoft's upgraded operating system.

The magazine's research team found that while Microsoft delivers on the bulk of the features promised, not everyone will benefit from installing the new system. Many consumers may not have to buy the upgrade at all. Windows 98 costs about $135 in Bermuda.

In fact PC Magazine is suggesting that most people who already have Windows 95 -- the predecessor to Windows 98 -- don't need the upgrade. Windows 95 already has most of the features that come with Windows 98.

Only those who are buying a new personal computer for the first time should make sure they buy a system with Windows 98 already installed. The key advice is -- if you don't need all the extra bells and whistles, and the bugs and problems that are bound to crop up from them, then it's best to stick with Windows 95.

Small business may find enough benefits in the new system to warrant the upgrade, but larger businesses are better off waiting for the next release of Windows NT, the magazine advises. The newest version of the network operating system is due out next year.

"Windows 98 is the right choice for consumers purchasing a new PC and for some small businesses, but only those people who need some of the new features should upgrade a system that currently works well,'' the magazine's editors state.

Other test results found Windows 98: holds to Microsoft's claim it did not set out to make significant improvements in general performance but instead focused on bottlenecks such as start-up and shut down times. The magazine found start-up speeds did not improve, but shutdown time was generally faster on a number of machines tested; had more efficient data storage and an application loading time twice as fast than Windows 95; had an easier and faster installation of additional hardware to the system.

The last item is one of the most interesting improvements, pointing to the coming trend of transforming computers into what is basically described as "home entertainment systems''.

Some forecasters see such as system as a computer, game, television, telephone, and stereo combination. More and more consumers are sticking digital cameras and camcorders on to their computers to capture images on screen and send them off down the Internet. That's in addition to the mice, scanners, keyboards, printers, fax machines, game and sound cards already stuck on to machines.

Windows 98 incorporates "extensive'' support for connecting devices allowing "all computer accessories and peripherals to connect and work all at once, eliminating the hassle of having to connect and disconnect devices'' according to the magazine.

The complete Windows 98 test results of PC Magazine Labs can be found a www.pcmag.com.

*** Tech Tattle deals with technology issues. Contact Ahmed at 295-5881 ext. 248 or 238-3854 or techtattle ygazette.newsmedia.bm.