Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Dell Technologies Inc. -- Ignore unavailable to you. Want to Upgrade?

To: D.J.Smyth who wrote (160182)	8/30/2000 3:38:40 PM
From: calgal	Respond to of 176387

Dell cuts prices on some PC models By Bloomberg News August 30, 2000, 11:10 a.m. PT ROUND ROCK, Texas--Dell Computer, the biggest direct seller of personal computers, said it cut prices for some desktop PCs used by businesses, schools and governments after its parts costs fell. Dell reduced its OptiPlex GX110 system price about 7 percent to $799 from about $855, and it cut the OptiPlex GX100 about 6 percent to $599 from about $635, the company said. The GX110 includes Intel's Pentium III processor, while the GX100 comes with Intel's less powerful Celeron chip. Neither system includes a monitor at these prices. The price cuts stem from lower costs for components, and Round Rock, Texas-based Dell typically passes on the savings to its customers, spokesman Ken Bissell said. Dell's PC sales rose 7 percent worldwide during the second quarter, and overall sales rose 25 percent, falling short of analysts' estimates. Given the slow demand for corporate PCs, Dell must keep its prices in line with rivals such as Compaq Computer, said Mark Margevicius, an analyst at Dataquest, a unit of technology market researcher Gartner. "Dell can't afford to maintain higher pricing relative to its competition," he said. The price cuts come amid a shortage of PC components. Yet, parts prices are falling because component production costs keep declining, Margevicius said. Dell also has been able to reduce its own manufacturing costs. "They're downplaying their ability to build these systems more efficiently," he said. Investors expect Dell will rebound from the second quarter and report stronger sales in the second half. Company chairman Michael Dell said at a trade show in San Jose, Calif., two weeks ago that the company's sales will rise to $33 billion this year, a 30 percent increase from last year. Copyright 2000, Bloomberg L.P. All Rights Reserved. yahoo.cnet.com