Yes,yes, there is one model currently available for under $1K but like you suggested with this IBM deal it is very likely that Dell could expand on sub 1000 product line.One thing is for sure if they do enter the lower end of the segment they won't be losing any money on it,if anything Dell is better positioned than anybody else out there to sell sub 1 k at a profit,the man said so himself.
dell.com
...Q: Do you think that you can enter the cheap PC area and still keep within the parameters you have set for the company?
Dell: We can sell a PC at a lower price than our competitors and still make a profit where they couldn't because our cost structure is lower. Which is interesting, because some of our competitors claim that they make more profit on their sub $1,000 PC's then they do on their more expensive ones. How do you do that? That's a form of math I'm not familiar with. I still to this day don't understand how you can make more money on an $800 computer than you can on a $2,000 computer. Someone is going to have to explain that to me, or at least to their shareholders.
The way that you get low priced computers is to get low priced components. As the component cost comes down, you get lower priced machines. We have machines that are under $1,000 today for the corporate market. We have consumer machines that are $1,100, although we tend to sell the more fully featured machines, Pentium IIIs with 19" monitors....
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