Dell's XPS One (PRODUCT) RED is a charitable rip off
By Thomas Ricker 
posted January 25th 2008 3:05AM
posted January 25th 2008 3:05AM
Based on those retail prices, you're locked into almost $200 in add-ons that Dell and Microsoft will happily mark-up to $300 -- $80 of which is donated to the Global Fund. Never you mind that the full-featured Vista Ultimate (even with RED-themed desktops, screensaver, and widgets) adds very little value to the vast majority of home users when compared to Vista Home Premium. Or that Microsoft says that "Vista Home Premium is the preferred edition for home desktops." So why bother with Ultimate on the XPS One in the first place, except to up the perception of greater value? It's not like this all-in-one desktop will ever step foot inside of an enterprise cubicle. Our advice: save your $300 and just give some cash directly, it might work out better for your taxes anyway.
[Thanks, Justin M.]
All the companies do this. They keep $300 and give a small fraction of the profit to a charity. Apple did that with their Red Nano. Only gave like $10 out of the hundred-dollar price tag. That's why I don't like buying RED products to give to charity because I really don't know if its a scam or not.
Sure seems like one when Dell and apple can't just give the full retail price of the product to the charity or the price increase of the product to the charity. $300 goes way farther than $80.
JAmerican
Correct me if I'm wrong but Apple charged the same price as regular Nano's for the red Nano. Same exact price but a proceed of the profits went to the Bono fund.
Your wrong!
Apple didnt donate the $10 from each (RED) iPod to 'the Bono fund'
@Rae,
Jkswiss is right. No bump in price, $10 donation. Though Dell's contribution is 5% the price, Apple's 4%
http://www.engadget.com/2006/11/03/apple-launches-8gb-product-red-ipod-nano/
Thomas
I was talking about them donating it to Bono's own fund
Checked the (RED) website and who is the co-creator?! Bono.....im so tired of him
Bono sucks. U2 hasn't been decent in 20 years.
Lose the damn sunglasses.
Don't make more music.
Get off TV and out of my life.
I bet if I didn't include Apple in my comment, I would have been highly ranked. Sad how many fanboys don't realize Apple is a company like any other. They are not your friend. The $20 iPod Touch update charge is an example. Remember that stingy $2 Wireless-N update. I own a PowerBook G4. My PowerBook G4 doesn't have the trackpad gestures that some other PowerBooks and MacBooks got. I thought it was a hardware feature until I installed iScroll 2. Really pissed me off how Apple basically just had to update the driver of the trackpad.
J, while I do agree on your comments about Apple. They should definitely not be left out of the loop when it comes to things like this.
Correct me if I am wrong, but you're expecting companies to take a complete hit on the products they sell. While this might work, in principle, on a small scale like a one off movie ticket promotion. Or a one off charity event, like the recent Airbus A380 charity flight by Singapore Airlines.
It's no where near sustainable in the long term, even a company as big as Dell or even Apple would fold eventually. Ultimately, companies are all about making a profit, but if they can, at the same time contribute even a little into giving back to the community, no matter how cynically you choose to look at it, it still ends up making a positive difference to a communities life.
So what if they get a little bit of positive PR out of it? Someones life is better because of it than if they did nothing.
JAmerican... you're not low ranked because of your Apple comments, you're low ranked because you're wrong for comparing the two.
Apple is doing like most everyone else, so instead of saying Apple, let's say "Most Everyone". No price increase, you get the same item except for the (PRODUCT) RED logos and usually a red coloring.
Dell (and perhaps Microsoft) are profiting from (PRODUCT) RED. They add $200 of value to a product (mostly unnecessary value mind you), mark it up $300, and take out $80 for (PRODUCT) RED. $20 pure profit added. The $200 is either pure profit for Microsoft, or it is split so that both Dell and Microsoft get a share (not sure how MS deals these things to OEMs nowadays).
Long story short... if you really want to give to charity, do it as you like... but if you deal with Dell, you're giving to the Dell charity more than to anyone who really needs it.
Yeah, if you look at the software included, the RED version comes with more expensive versions, such as Vista Ultimate and Office 2007.
That would explain the price bump.
Dude, Zeus, read the effing article. The "extras" don't add up to the extra added price.
I read the article, and I saw the price, numbnuts.
I don't know how the fuck it works out, entirely, but those would definitely contribute. Also, I heard that the base is on sale right now, and that would cover the entire thing, if true.
No matter how you slice it, why the fuck does it matter? People who want to buy it will buy it, and maybe there are other factors that figure into the higher cost.
Stop being such an ignorant douche and think. Not everything about the computer is posted there, you know.
Smells like communism to me.
Smells more like capitalism... oh wait, it is capitalism.
JAmerican
This is NOT a story.
Dell and Microsoft and doing something good by adding RED to their products. Doing these sort of markup calculations helps no one. Dell and Microsoft need to make a profit, and AIDS only benefits by having RED added to the lineup. Stop complaining and move on.
LOL! Epic win. Wow. Go take some other joke serious. Idiot.
@ Gremlin
Ok... But they dont need to raise the price of there product to cover the loss and make a little more too.
$10 on a $100 price tag isn't bad considering they sell all the others for $100 too. Don't put apple in with dell's garbage. Apple didn't raise the price on their (RED) product, they left it the same, changed the color and donated part of the money you would normally spend to charity. Dell on the other hand, raised the price, added in a bunch of new stuff that doesn't even add up to what you spend. And is basically trying to turn profit on people's generosity. 100% different and almost, in my opinion, immoral.
Are you serious sabba? Look at what your getting vista ultimate instead of premium thats like $100 and Microsoft office is like another $100 so that leaves $100 of which $80 is being donated so its not perfect but its realy not that bad.
@Beata Yamin
The point is, you are giving Dell an extra $100 so they can send $80 to charity.
"so its not perfect but its realy not that bad."
Yes it is. If you go to the bank and cash a check for $100, and they give you $80, is that acceptable? Well, the bank is just trying to turn a profit... Bull. Ripoff. I'll keep my $100 and give all of it to charity myself. Get off your high horse and back into reality.
@Beata Yamin
It is bad. Do you really think Dell pays Microsoft 100 extra for each option? OEMs pay a small fraction of the retail price of software.
It's a scam to turn a $200+ profit for a $80 charity. Dell should be ashamed.
They could of made it red
it IS red, the back of it, and it looks really slick.
I didn't think it could be done... but Microsoft has made ANOTHER version of Vista!
@x20mar
could HAVE, they could HAVE made it red.
Wow -- this is pretty overblown and inaccurate. If you do a little research, you'll quickly find (at joinred.com) that the XPS One and other [RED] products are a joint project between Dell *AND* Microsoft. You can debate the merits of Windows Vista Ultimate until the cows come home, but it is a part of Microsoft's joint participation with Dell and represents their portion of the product. The Windows Vista Ultimate upgrade is $150 on other systems (I just checked the XPS M1330, for example). The XPS One [RED] also includes Office 2007 Home & Student Edition (a $149 upgrade). All told, a with the upgrades, the [RED] system would start $300 higher (okay, technically $299).
There is no conspiracy here.
I said, "Dell and Microsoft will happily mark-up to $300 -- $80 of which is donated to the Global Fund."
The point is, the RED XPS One *starts* at $1,599. There is no option to downgrade to Vista Home Premium and Works and save yourself the pointless $300 premium. That's uncool.
Thomas
@Thomas
For the record, charity in any form is not uncool
If you are trying to tell us directly that their greed goes beyond acceptance, just say it so, my friend. Still, your chart is very convenient for that purpose
yo thomas if u dont like it dont buy it but some people are going to get microsoft office and vista ultimate anyways so why not donate.
I hate to be in the minority, but I agree with Nate.
This issue has gotten a little overblown.
1. If you don't agree with the whole concept behind PRODUCT (RED) no one is forcing you to be a part of it. You can still get your plain vanilla computer, should you so desire through Dell or any other company and donate the $80 directly to a charity of your choice. Go ahead. Do it. No one is stopping you.
2. And wow. What do you guys have against Bono? Yet again, if you hate his music so much to the point you don't want to have anything to do with him, then good for you. Just make sure you stay away from Forbes, don't use subtitles in your movies (SDI Media, does a lot of the foreign subtitles for films), don't play any BioWare or Pandemic video game and ignore Palm (ok, honestly this specifically won't be too hard) cause he owns a stake in each of those companies. While you're at it, celebrate your ignorance!
Now back to the real issue here... I do feel that Dell and Microsoft should perhaps release a (RED-ified) desktop that might be more accessible to the average consumer, but no one said they wouldn't. If it means so much to you, get on the IdeaStorm website and share your idea with them, rather than ranting about it and calling them.
Ultimately, Dell and Microsoft still give $80 to (RED). It is up to you to decide what value that represents to you. If you're able to give $80 or more to a charity of your choice without going through Dell then all the better! No one is forcing you to do so. But alas, we're all entitled to our own opinions.
I agree with Nate as well. The software upgrades included with the RED version are costly and would seem to justify the increase in price. Ok, so you don't get a choice with the software, but is that so ridiculous or is it merely inconvenient? I don't think it's a big deal.
But it comes with a cool red wallpaper .. that's gotta be worth something.
That's all because of discount "200$ off" for basic XPS One, but old price for the same base hardware included in XPS One RED package)
But it's not even red... I could see making the premium version Red like apple did w/ the blackbook to leach money from consumers, but they didn't even do that!
It is red.
http://img115.imageshack.us/img115/5013/dellnewproductreditemswdw5.jpg
This makes me red
Ha,
This is hilarious.
These companies see all the people who are just dying to show how much they "care" about the planet and poor people in other countries (and are therefore better than the rest of us).
I think it's great that companies are making money off of them and taking the credit for the charitable donation too.
So no conspiracy?
That may be well and true. So why not just offer the same set-up except for being red? Then there would be NO confusion.
your cynicism is understandable, but it is absolutely untrue that "all the companies" are skimming red proceeds. american express's red card is just like their other cash reward cards, with the same interest rates and no extra fees. they just give the 1% of your purchases to the aids program, instead of giving it back to you.
in an ideal world, these companies would give to charity freely, from their *own* profits, instead of engaging in this conditional bullshit based on consumer action. if corporations are to enjoy the same legal rights as citizens, they should accept the responsibilities, as well. of course that would be communism, according to some people. can't have that!
@ Tom:
Its obviously worth $300.
the extra cash you pay goes to Bono directly - hey somehow he's gotta pay for the fuel of his gulfstream jet, right?
I have to applaud Engadget for their statement to save your money and donate yourself. I'd also like to encourage blogs like this to start putting pressure on corporations to include carbon offsets in their plans.
You might not know this, but Dell was the first major computer manufacturer to start a major Carbon Offset program. You can find out more about it here: http://www.dell.com/earth
They're also a leader (much higher than Apple) when it comes to "greener electronics" as per an article or two in engadget last year:
http://www.engadget.com/2007/11/27/greepeace-posts-latest-guide-to-greener-electronics-sony-ericss/
Granted, I agree there's a lot more for every company to do before they can truely be called anything near green, but Dell, at least seems to be headed in the right direction.
It's just a shame that they said to donate to the Product (Red) charity directly.
The sentiment is great but donating to a charity that actually helps people rather than spending all their money on advertising would be an even better move.
When I bought my Dell XPS, I planted a tree.
I'm sorry, this just has to be said....
I really feel for the people with AIDS/HIV. I do have compassion for them. That said, the PRODUCT RED campaign is somewhat a fraud. They claim to 'wipe out aids'. It's simply not true. Their funds go to pay for anti-retrovirals for people who already have AIDS. It has nothing to do with stopping the transmission of AIDS/HIV. Truth be told, if anything, it increases transmissions because there are more people living now with AIDS b/c of the anti-retrovirals. More carriers equals more transmitters.
Again, I point out that I have compassion for those with AIDS/HIV, but the premise behind PRODUCT RED campaign is to wipe out the disease, and it's a lie.
dude, are you serious?
i don't know how you can make the statement that (red) is a fraud. to begin, they don't claim to "wipe out aids." 100% of the money from (red) products goes to the Global Fund. through the global fund, the money then goes to antiretrovirals and prevention of transmission.
suggesting that if the people infected with aids/hiv would just die so that the number of aids/hiv victims is less is just plain cruel.
it might serve you to actually check out the (red) site...
@ Gavin
In no way am I suggesting that the AIDS patients should die. It is wrong of you to suggest that I was implying that.
PS. Check the (RED) home page... 'to help eliminate AIDS'.
The Global fund facts (again from the (RED) web site...
1.4 million people with treatment for HIV and AIDS
33.5 million people with voluntary HIV testing
2.1 million orphans with basic care and support
3.3 million people with treatment for tuberculosis
46 million people with insecticide-treated mosquito nets
No plans, no mention of any kind of prevention and stopping the spread of AIDS. Abstinence perhaps? The only prevention mentioned is from mother to child transmission.
So how exactly is the (RED) campaign helping eliminate AIDS without any prevention education?
I'm just pointing out the facts. I have just as much compassion as the next guy for these people, but the (RED) campaign isn't doing anyone any good except the companies making themselves feel good about being a part of the project, not to mention Bono, Oprah, etc.
@ taylor
sorry if i took that wrong, it's just how it sounded. having spent time in uganda and soon to be in south africa, the aids crisis is something i take to heart. i believe people like bono and oprah genuinely care and the fact is they are making huge contributions in their efforts.
Gavin
It's good to hear you're in those areas. Are you doing NGO work? I have been to Africa a number of times for pleasure and humanitarian reasons. I will be living in Sudan full time with a mission for the rest of my life starting next fall, just have to get all of the money raised. It's one of many important issues I care about.
I agree, they are attempting to do what they can (Oprah & Bono), from their point of view, I just don't agree with it (I think they have their own moral issues that keep them from asking others to abstain from sex and other things that may help fight AIDS/HIV). And to circle back, RED still seems like fraud to me. They claim to help eliminate AIDS when they are not, just helping those who have it already.