Dell-icious & ALL: Here's one possible reason as to why Dell's Stock isn't doing much. Who said Dell isn't going to be selling sub $1000 pc's? IMO, the only reason Dell is lowering prices is due to industry pressures. Lets see if margins hold-up. They should hold if components price reductions are truly offsetting the unit price reductions.
Dell Cuts Prices On Home and Small Business Desktop PCs Thursday, October 29, 1998 01:30 PM
ROUND ROCK, Texas--(BUSINESS WIRE)--Oct. 29, 1998--Dell Computer Corporation (Nasdaq:DELL), the world's leading direct computer systems company, today announced price cuts of up to 13 percent on Dell(R) Dimension(R) PCs for home and small business customers.
The largest price reductions apply to high-end configurations of the Dimension XPS series PCs that include 400MHz and 450MHz Intel Pentium II processors, DVD drives and high-capacity hard drives. Dell attributes the price cuts to component costs savings.
"Dell's direct model enables us to keep low component inventories that enable us to give customers immediate savings when component prices are reduced," said Paul Bell, senior vice president, Dell home and small business group. "Because of our inventory management, Dell is able to offer some of the newest technologies at low prices while our competitors struggle to sell off older products."
Examples of today's price reductions include:
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NEW Dimension(R) V350, Pentium(R)
II Processor at 350 MHz
----------------------------------
Mini Tower Model
32MB 100MHz SDRAM
512KB Integrated L2 Cache
6.4GB Ultra ATA Hard Drive
800F 15" (13.7" viewable) Monitor
ATI 8MB 3D AGP Graphics
32X Max Variable CD-ROM Drive
Yamaha XG 64V Wavetable Sound
NEW harman/kardon HK-195
Speakers
Microsoft(R) Office 97 Small
Business Edition v2.0 plus
Encarta 98
Microsoft(R) Windows(R) 98
QuietKey(R) Keyboard
MS IntelliMouse(R)
3-Year Limited Warranty
1-Year On-Site Service
----------------------------------
New Price 1,314
Price Cut 200
Was 1,514
% Reduction 13.2%
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Dimension(R) XPS R400, Pentium(R) II
Processor at 400 MHz
------------------------------------
Mini Tower Model
64MB 100MHz SDRAM
512KB Integrated L2 Cache
10GB Ultra ATA Hard Drive
1000LS 17" (15.9" viewable)
Monitor
ATI XPERT 98D 8MB 3D AGP
Graphics Card
40X Max Variable CD-ROM Drive
Crystal 3D 64V Wavetable Sound
NEW harman/kardon HK-195 Speakers
Microsoft(R) Home Essentials 98
with Money 98; McAfee VirusScan
Microsoft(R) Windows(R) 98
QuietKey(R) Keyboard
MS IntelliMouse(R)
3-Year Limited Warranty
1-Year On-Site Service
----------------------------------
New Price 1,700
Price Cut 232
Was 1,932
% Reduction 12.0%
----------------------------------
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NEW Dimension(R) XPS R450,
Pentium(R) II Processor at 450 MHz
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Mini Tower Model
128MB 100MHz SDRAM
512KB Integrated L2 Cache
16.8GB Ultra ATA Hard Drive
1200HS 19" (17.9" viewable, .26dp)
Monitor
STB nVidia ZX 8MB 3D AGP Graphics
Card
40X Max Variable CD-ROM Drive
Crystal 3D 64V Wavetable Sound
NEW harman/kardon HK-195 Speakers
NEW 3Com(R) USRobotics V.90 PCI
WinModem
Microsoft(R) Home Essentials 98
with Money 98; McAfee VirusScan
Microsoft(R) Windows(R) 98
QuietKey(R) Keyboard
MS IntelliMouse(R)
3-Year Limited Warranty
1-Year On-Site Service
----------------------------------
New Price 2,310
Price Cut 281
Was 2,591
% Reduction 10.8%
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All Dell PCs come standard with a three-year limited warranty, one-year On-Site Service and lifetime toll-free telephone hardware support. Additional information and prices for Dell Dimension PCs are available at Dell's Web site at www.dell.com/products/dim.
Any comments?
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