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Dell business desktop down to $850
By Stephanie Miles and Brooke Crothers
Staff Writers, CNET News.com
December 4, 1998, 4:55 p.m. PT
Dell will cut prices on corporate desktops computers on Monday, bringing these robust business systems to the $850 mark.
Dell Computer will reduce the prices on its high-end and mid-range OptiPlex desktops targeted at large corporate customers on Monday, bringing one system based on an Intel Celeron processor to $849, or $1,048 with a 15-inch monitor. This is a reduction of 11 percent.
This G1 model includes a 333-MHz processor and a 4.3GB hard drive.
Sub-$1,000 business systems with the newest Celeron chip are already offered by both Compaq and Hewlett-Packard (HP). The chip is also popular in consumer models.
The low cost model from Dell means it's matching competitors blow for blow in the low-cost business desktop market, an area where Compaq and HP have typically been the most aggressive with pricing.
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At the high end, a GX1p will fall to $1,999 from $2,199, a drop of nine percent. This packs in a 400-MHz Pentium II chip, 128MB of memory, 10GB hard drive, a networking chip from 3Com, and a 17-inch monitor.
A mid-range model will fall from $1,399 to $1,299.
"We're now selling $10 million over the Internet; corporate sales over the Internet have increased to a hefty portion. Due to those efficiency gains, we have seen quite a drop in operating expenses...that's what's driving this," said Danny Young, director of marketing and sales for the OptiPlex line.
Related news stories
• Dell cuts notebook, PC prices November 5, 1998
• Dell cuts price of consumer PCs October 29, 1998
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Compaq BB Robertson Stephens upped its rating to strong buy from buy and its price target from 40 to 50... Briefing concurs... Key resistance is at 40... Penetration of this ceiling would mark upside break out from 15-mo trading range and position computer maker for run to the 48-50 range over next 6- to 12-months.
Gateway (slumped badly after CEO was said to have noted at a CS First Boston Tech Conference that revenues in October and November ran behind target... However, Gateway spokesperson later reported that company merely noted that it has to sell a lot of computers in December to meet its target... Given strength in sales since Thanksgiving company expressed that it was to early to change its guidance... Important support is at 49.
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