Hmm, I think Dell should take a page out of Apples Book. Present the item as a high tech lifestyle choice and not just a tool and people will pay top dollar for the thing. In other words don't compete on price alone. Noone wants a cheap looking item when it comes to their high tech purchase. They aren't buying heads of lettuce but are shelling out $1000s for something. So you have to treat them like they are getting something special.
The Apple items look High-Tech and ahead of their time from a design standpoint so they create a certain "lifestyle." This is the same thing that allows Starbucks to charge 4.50 for a Latte because people are buying into the Bohemian coffee-house lifestyle even though there are a 100,000 Starbucks. The perception of luxury and living a different/idealistic life is what keeps people shelling out the big bucks for these items.
The Apple Store just looks like a high-tech design center of the future. Where you come and buy hip stuff from Apple Zealots to allow you to buy into the I-lifestyle. Dell cannot compete effectivly with this since they cut every corner to make the computer super-cheap. After a while Dells come out looking cheap and crappy. They get the same rep as an E-Machine or other low end PC dealer. Bad Quality, looks like something you find at an office, and not something for a hip, high-tech lifestyle of the future.
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