Here is some telling news on DELL. It should have been a boost for the stock, but
seems to have offered no help. In my opinion the highlighted area is what is key. Dell
recognizes that they are now on the defensive trying to protect market share, and not
just grow it....In my opinion this must eventually affect margins...every PC company
out there is after DELL...once they shift to a market share strategy, margins will suffer:
DELL: Dell OptiPlex prices reduced by up to 20%
AUG 4, 1997, M2 Communications -
Dell has today reduced the price of its
market-leading OptiPlex desktop computer range in the UK by up to 20%
in a move that makes them significantly cheaper than other competitive
corporate PC products.
This follows the announcement earlier this week of the launch of
Dell's first workstation product range delivering the benefits of the
direct sales model to the corporate workstation buyer for the first
time.
Ray Badminton, Desktop Marketing Manager, Dell UK Corporate said:
"Dell is in a very strong position. As a result of the Dell direct
sales model and low inventories, we can bring the latest products to
market at a price point that few others can touch. Combine this with
our award winning service and support and Dell becomes the automatic
choice for a increasing number of corporate customers"
The Dell OptiPlex GsM 5166MMX with 16Mb RAM, 2Gb HD and a 15"VIS
monitor has been reduced by 16% bringing it down to just GBP 959 (+
VAT). This is currently 18% cheaper than an equivalent product from a
major competitor with a traditional indirect sales model.
Steve Rawsthorn, Marketing Director, Dell UK Corporate commented: "We
are seeing our competitors attempting to change their sales model in
order to compete on price and customer service levels but our
experience in delivering quality product, built to order in the direct
sales market puts us years ahead. Now after the launch of our UK
Internet store www.dell.com/uk anyone can configure their own PC
on-line and complete an order in minutes."
These price reductions are the latest in a long line of price
leadership and technology moves made by Dell. According to Rawsthorn,
the Direct model allows the company to make these changes and bring new
and leading edge technology to market faster than any other competitor.
"We build all products to order with very low raw material stock
levels and zero finished goods inventory," he continued. "This lets us
take maximum advantage of component price reductions available to us
and offer these to our customers immediately".
"These announcements continue to protect our customers' investment
and reduce total cost of ownership by extending what is a stable, high
quality and fully compatible product range," says Rawsthorn.
Dell WorkStation 400
Dell's first NT workstation product is available from August 1st and
offers comparable performance with other industry leaders at nearly
half the cost. The Dell WorkStation 400 is available from
www.dell.com/uk as well as via Dell's direct sales teams.
The WorkStation 400 Dual Pentium II processor 300 Mhz, 128Mb RAM, 4Gb
SCSI HD, 8xSCSI CD, Matrox Millennium II 8Mb video adapter with
UltraScan 17"VIS TrinitronT monitor is available at a list price of
just GBP 4718. Badminton says: "This is almost half the price of one of
our major competitors. They are asking over GBP 9,000 for a workstation
with a similar specification but based on older, slower dual 200mhz
Pentium Pro processor. We think our corporate customers deserve better
value"
About Dell Computer Corporation
A Fortune 500 company, Dell Computer Corporation is the world's
leading direct computer systems company, based on revenues of $8.7
billion for the past four quarters. Dell designs and customises
products and services to end-user requirements, and offers an extensive
selection of peripherals and software through the DellWare program.
Information on Dell and its products can be obtained through the UK
press office on 01344 723045 or by accessing the Dell World Wide Web
server at www.dell.com/uk
Dell, the Dell logo, OptiPlex and Dellware are either registered
trademarks or trade marks of Dell Computer Corporation in the United
States and other countries.
Fortune 500 is a registered trademark of The Time Inc. Magazine Co.
Dell disclaims any proprietary interest in the marks and names of
others.
-0-
(C)1994-97 M2 COMMUNICATIONS LTDCONTACT: Kate Hammond, Dell
Press
Office
Tel: +44 (0)1344 723 045
Fax: +44 (0)1344 723 133
e-mail: kate_hammond@dell.com
Saffron Johnston, Insight Marketing
Tel: +44 (0)1625 500 800
Fax: +44 (0)1625 500 900
e-mail: saffronj@insightmkt.com
*M2 COMMUNICATIONS DISCLAIMS ALL LIABILITY FOR
INFORMATION PROVIDED WITHIN M2 PRESSWIRE. DATA
SUPPLIED BY NAMED PARTY/PARTIES.* |
