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Chronicles

The story behind the story

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Do the (RED) thing

There's been some speculation online that Windows, Dell and (RED) are going to make an announcement later this week at Davos.  Wouldn't it be incredible if, through the simple act of choosing a PC, and at no extra cost to you, you could put someone living with AIDS …

Windows Vista Team Blog Nick White

Context & Ripple Effects

This post from Microsoft's Windows Vista team confirms what online chatter already suspected: a rumored joint announcement by Windows, Dell and (RED) at this week's Davos gathering would let PC buyers fund AIDS relief at no extra cost. The rumor arrives mid-way through Dell's design-led reinvention, which has run from its move into colored laptops in June 2007 to the XPS One that reviewers judged a better machine than Apple's iMac in December.

It also lands while Microsoft is defending Windows from two flanks: Linux options like Dell's Ubuntu line have put a hard number — roughly $50 per machine as the "Windows tax" — on the cost of choosing Microsoft, and the company has spent 2006-2007 courting developing-world users through plans to connect the poor by cellphone and a Vista SKU for low-cost PCs. A zero-cost charity tie-in gives the Windows-plus-Dell bundle a value story that price comparisons can't capture.

First-order effects

  • If the Davos announcement goes ahead as speculated, every Dell-Windows buyer becomes a micro-donor by default, and Dell gets a differentiator its commodity-priced hardware lineup has lacked since the colored-laptop relaunch.

Second-order effects

  • Rival PC makers face pressure to attach their own cause-marketing layer to hardware, because the initiative raises the baseline of what a 'standard' PC purchase includes without moving the sticker price — blunting the pure price argument behind cheaper Linux configurations.

Third-order effects

  • Cause marketing shifts from optional campaign to expected feature in consumer electronics, with global stages like Davos serving as launch venues where software platforms and hardware makers co-brand philanthropy to signal values beyond specs.

The trend: As PC hardware commoditizes, platform owners and manufacturers are bundling philanthropy into the purchase itself as a differentiator that survives price wars.