I used to think about getting Dell stock since it appears to be cheap, until I came across this article on business week, here’s the excerpt:

It didn’t seem as if he was asking for much. When the CD drive on Peter Ulyatt’s Dell desktop computer failed this summer, he called the support crew at Dell (DELL ), where he’d bought the $1,600 machine nine months prior. Armed with an extended warranty that cost him an extra $300, the Pasadena (Calif.) retiree got on the phone and waited. After sitting on hold for 45 minutes, a technician whom Ulyatt could barely understand came on the line and diagnosed a “software problem.” Ulyatt’s call, transferred to the software technician, was dropped. Calling back, Ulyatt waited on hold another 45 minutes, asked for the software desk, and waited a half-hour more before hanging up. “At the moment, I’m not high on Dell’s service,” says Ulyatt, who plans to buy two new PCs in a year or so. “When I buy again, I will look at others beyond Dell.”

Ulyatt’s ordeal is not an isolated case. All tech companies have some unhappy customers, of course, but recent surveys suggest the ranks of frustrated Dell Inc. owners are growing. Complaints to the Better Business Bureau rose 23% in 2004 from the year before, and they’re up another 5% this year. … “We’ve never seen a drop like this,” says professor Claes Fornell, who ran the survey.

Plenty of people are going public with complaints. … Web sites such as ihatedell.net have popped up. …

Could such sentiment lead to trouble for the world’s largest PC company? Over the past decade, Dell’s dependable support, combined with competitive prices and build-to-order convenience, made it the default choice for millions of consumers. Its market share continues to rise overall, and it holds 28.8% of the U.S. consumer market,…. However, a sagging reputation could slow sales, … In the most recent quarter, Dell missed its sales target, one reason its stock has dropped 18%, to $34, since the start of the year.

….Other key PC makers are increasing the pressure on Dell. Apple, which consistently ranks high in customer surveys like Michigan’s, recently decided to start using chips from Intel Corp. (INTC ), making it a more direct competitor to Dell. And Hewlett-Packard Co. (HPQ ), Dell’s biggest competitor, seems intent on distinguishing itself with customer service.

Over the past year, HP has launched several initiatives to build loyalty. One lets HP employees key in information on product glitches they hear about from customers, who then are supposed to receive a call from a rep within 48 hours. Another is a diagnostic tool HP developed to help consumers figure out what kind of problem they have, even if it doesn’t involve HP gear. Dell won’t help customers with non-Dell problems unless they pay extra. “Given today’s digital lifestyle, it’s vital,” says Diana L. Bell, HP’s senior vice-president of total customer experience. “We have to do more than say, ‘here’s the product, and catch me if you can.”