A bit more pressure on CPQ: Dell Cuts Prices Again on Corporate PCs
PR Newswire, Monday, June 23, 1997 at 14:17
Build to Order Model Allows Quick Delivery of Component Cost Reductions
ROUND ROCK, Texas, June 23 /PRNewswire/ -- Dell Computer Corporation
(NASDAQ:DELL), the world's leading direct marketer of computer systems, today announced price reductions in the U.S. of up to 13 percent across its line of network-ready OptiPlex(R) corporate desktop PCs. Today's price cuts are the third since January on the OptiPlex line. Prices on some OptiPlex systems have dropped as much as 44 percent since January.
"Our build-to-order, direct-to-the-customer sales model gives us many
competitive advantages, including the ability to quickly pass on to customers lower costs and component prices when these decline, as they have done recently," said Kevin Rollins, senior vice president of corporate strategy and general manager of Dell Americas. "The combination of aggressive pricing,tailored service and support and outstanding products that are built to order has given us exceptional momentum this year and we are continuing to make inroads in the U.S. corporate PC market."
Dell's price cuts of up to 13 percent are effective immediately across itsline of OptiPlex PCs. Today's announcement places some OptiPlex PCs up to 30 percent lower in price than comparable systems offered by some of Dell's major competitors.More than 90 percent of Dell's revenues are generated from business and government sales, with more than 70 percent coming from large corporations and public institutions. According to IDC, Dell is the No. 2 supplier of PCs to
corporate America.
Low Inventory, Low Costs
Dell builds its computer systems to custom order rather than forecasted demand, which allows it to maintain an inventory cycle as low as 12 days.This enables Dell to more quickly pass along component cost reductions to its customers.
The award-winning line of Dell OptiPlex PCs is built specifically for use in networked corporate and government settings. The network-ready systems provide improved manageability across complex networked environments by integrating an industry-standard 3Com(R) Ethernet solution directly on the motherboard. In addition, the OptiPlex line supports the Desktop Management Task Force's (DMTF) Desktop Management Interface (DMI) for easy, cost-effective network management. DMI lowers support costs by providing customers with an industry standard method to monitor, access or configure their desktops through a network management application. This also enables companies to
lower their PC total cost of ownership.
Customer Satisfaction
By focusing on dependability and reliability, Dell has won wide praise
from its customers and the computer industry. Readership polls in both PC Magazine and PC World recently ranked Dell among the industry's top providers of service and reliability. |
