Dell and Microsoft team up on (Red) computers

[Sporkman]

http://news.yahoo.com/s/nm/20080123/tc_nm/red_computer_dc_5


Dell and Microsoft team up on (Red) computers

By Daisuke Wakabayashi 1 hour, 20 minutes ago

SEATTLE (Reuters) - Dell (DELL.O) and Microsoft (MSFT.O) are teaming up to release a Product Red computer, donating up to $80 for every one sold to fund AIDS-fighting drugs in Africa.

Dell will start selling two (Red) laptops and one desktop running Microsoft Windows Vista on Friday. The two companies will donate $50 for a laptop and $80 for a desktop to the Global Fund, which finances health programs in Africa.

(Red), founded by U2 singer Bono and Bobby Shriver, works to develop co-branded products with companies such as Motorola (MOT.N), Apple (AAPL.O) and Gap (GPS.N), which then donate a portion of the proceeds for antiretroviral drugs.

Microsoft said it expects "several hundred thousand" (Red) Dell PCs to be sold in 2008. The PCs, designed in part by Bono, will have a distinctive red casing and the Windows interface will feature a red background and sidebar.

"My job is to put some poetry in the machine, put some funk in the machines," Bono said in an interview with Reuters.

(Red) has raised $53 million for the Global Fund since it was founded in 2006. Bono, who expects to exceed that figure in 2008 alone, said the organization lost some potential partners after a critical article in Advertising Age questioned the effectiveness of the campaign.

Microsoft Chairman Bill Gates, who provided some of the seed money for (Red), defended the group, saying it has saved lives that would have otherwise been lost.

"I guess you can criticize even life-saving activities. I don't know how, but if somebody has a better idea than (Red) to save more lives, we are all ears," said Gates in an interview. "I put it in the category of a creative use of capitalism."

Gates, Dell and Bono are expected to announce the partnership formally this week at the World Economic Forum in Davos.

The Dell products offered under the (Red) brand will be a XPS One desktop and XPS M1330 and M1530 laptop computers. The products will sell for the same price as regular Dell models.

The computers will go on sale January 25 in the U.S. and then the product will be available in 30 countries on Jan 31.

[quinnten83]

It's well known that Bill donates $h*tloads of money to charity and especially AIDS research and treatment.
I think it's nice that he contributes this way. Opens source is A way for others to contribute.

[tgalati4]

How about a new Red Theme for Ubuntu to go on these new machines?

[laxmanb]

(Red) is a sham. They spend more money promoting the initiative than the money actually donated by the cause. If you feel like philanthropy, just donate the money to a charity of your choice.


I like the color red though...

[Linuxratty]

But do you ever notice that no matter how much money is donated to Africa,hardly a tad reaches the people?
Most of it's scalped off by the higher ups.

[Babbage]

I agree with the last two posts. I think the Red campaign is just a cynical ploy to get consumers to buy more products, using a feel good factor. To put it simply, the Red sales pitch is, "Dell now with added altruism!" For example, across all the participant companies involved, the Red product is usually more expensive than that company's standard product. Why is that? It's because the product is a marketing gimmick to appeal mainly to the more affluent customer. The participant companies know the up-market customer will understand and appreciate the idea of Red and be willing to pay more for it. So they're able to sell the same, or a slightly upgraded, product for a far higher price. Yes, they'll make a contribution to Red, which is not a charity but a company that licenses the (RED) (http://www.joinred.com/manifesto/) trademark, but the extra profit is pocketed by the company.

The irony of Red is that charging more for already existing technology is what the whole "AIDS drugs for Africa" debate was all about. The struggle was to get the AIDS drug companies to provide the latest drugs at an affordable price. The fact that Red participant companies themselves charge more for their Red products is contrary to the spirit of what they say they stand for. It's supposed to be about making the latest scientific advances available to those who can't afford them.

[mips]

I think the correct Irish term for Bono would be 'egit'.

[DoctorMO]

I feel sorry for Bono, he's going to get so much hate mail.

[hyper_ch]

I've heard once B.G. was actually sentenced to donate money by a court... no clue whether this is true...

[Babbage]

The Dell (RED) marketing hype begins: http://i.dell.com/images/global/products/flash/red/index.html

[bruce89]

I think the correct Irish term for Bono would be 'egit'.

Eejit?

This sounds like trying to ape OLPC. (not the same thing though)

[Sp4cedOut]

(Red) is a sham. They spend more money promoting the initiative than the money actually donated by the cause. If you feel like philanthropy, just donate the money to a charity of your choice.


I like the color red though...

Part of it is the publicity the charity receives. If Bill Gates donates x million dollars to charity, it won't even make the local paper, but if Dell and Microsoft release a new product line, it receives a lot of news coverage and every laptop acts like a mini billboard.

[kamaboko]

But do you ever notice that no matter how much money is donated to Africa,hardly a tad reaches the people?
Most of it's scalped off by the higher ups.

So are you suggesting this will be the same with Dell and Microsoft? The cynicism about the Red project here is pathetic. I doubt very much Bono wants to attach his name to a scam to move product.

[DouglasAWh]

So are you suggesting this will be the same with Dell and Microsoft? The cynicism about the Red project here is pathetic. I doubt very much Bono wants to attach his name to a scam to move product.

Of course he doesn't want to attach his name to a scam. No one does. In fact, the fact that it isn't perceived as a scam is what makes the scam work.

Every little bit helps, I suppose, though if I'm going to have any (Red) from Dell, I'd like it to be followed by a Hat.

[asmiller-ke6seh]

I agree with the last two posts. I think the Red campaign is just a cynical ploy to get consumers to buy more products, using a feel good factor. To put it simply, the Red sales pitch is, "Dell now with added altruism!" For example, across all the participant companies involved, the Red product is usually more expensive than that company's standard product. Why is that? It's because the product is a marketing gimmick to appeal mainly to the more affluent customer. The participant companies know the up-market customer will understand and appreciate the idea of Red and be willing to pay more for it. So they're able to sell the same, or a slightly upgraded, product for a far higher price. Yes, they'll make a contribution to Red, which is not a charity but a company that licenses the (RED) (http://www.joinred.com/manifesto/) trademark, but the extra profit is pocketed by the company.

The irony of Red is that charging more for already existing technology is what the whole "AIDS drugs for Africa" debate was all about. The struggle was to get the AIDS drug companies to provide the latest drugs at an affordable price. The fact that Red participant companies themselves charge more for their Red products is contrary to the spirit of what they say they stand for. It's supposed to be about making the latest scientific advances available to those who can't afford them.

My first reaction to the Dell/Microlimp/Red PR was "So what?" My next reaction was suspicion based on some of the things that you talk about. My final reaction is "they should jump in the lake..."

Well, that was not EXACTLY my reaction, but children might be reading here...:lolflag:

[asmiller-ke6seh]

So are you suggesting this will be the same with Dell and Microsoft? The cynicism about the Red project here is pathetic. I doubt very much Bono wants to attach his name to a scam to move product.

Maybe he believes it's not a scam ... it's called "drinking your own kool-aid".

If Dell and Microsoft (and Bono) really wanted to help, they would just say that $XX dollars of the sale of each and every product for YY days would be contributed WITHOUT a price increase.

It might not be a scam ... but it smells like a marketing PLOY. If it looks like crap and smells like crap it's probably crap.

[happysmileman]

Is a Red Laptop more than $50 more expensive than a regular one, and is a Desktop more than $80 more expensive than a regular one, if so, then it's definitely a marketing ploy and a way to get extra profit.

If not, I'd like to believe it's actually a genuine attempt to help people, but from what i've read about stuff like this before I'm doubtful