The plan.
Dell Computer Corp. has resisted pressure from the emerging market for cheap PCs -- some of which cost as little as $299 -- and even free computers, which require only a monthly service fee.
For example, Emachines Inc., which burst onto the scene in the fall with PCs costing $399, is the No. 5 consumer vendor with a market share of 7.7 percent.
Dell offers a PC for $999 and expects to add revenue by guiding consumers to its online peripheral store, Gigabuys.com, and by adding services such as extended warranties.
Gigabuys.com and a leasing plan are parts of a broad-based program Dell is putting together for consumers. The latest element, which Dell is announcing today, is a 48-month purchase plan with no down payment and no payments for 30 days. Offered through Dell Financial Services, the purchase plan carries an annual interest rate of 18.99 percent.
The top five PC vendors worldwide in all products are Compaq Computer Corp., Dell, IBM, Hewlett-Packard Co. and Packard Bell-NEC.
For the full year, IDC expects worldwide shipments of PCs to rise 19 percent vs. 12 percent last year.
austin360.com
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