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To: wanna_bmw who wrote (169653)	8/20/2002 6:54:31 PM
From: Road Walker	Read Replies (1) \| Respond to of 186894

Dell To Sell Unbranded PCs Through Dealers Tue Aug 20, 1:39 PM ET Lisa Gill, www.NewsFactor.com In a major about-face, computer giant Dell ( Nasdaq: DELL - news) has announced it will begin selling unbranded PCs through small business dealers in an attempt to capture a greater proportion of white-box sales. With the announcement, Dell is targeting territory, previously explored by both IBM ( NYSE: IBM - news) and Hewlett-Packard ( NYSE: HPQ - news), that represents a US$3 billion U.S. market and more than 40 percent of desktop PCs in the nation. Stand-In for IT Dell said it is aiming its new initiative at computer consulting firms that work with small businesses, which often lack the internal resources to hire an in-house IT department. "They do everything from making hardware decisions, purchasing decision, networks installations -- all those types of things. They are doing more than reselling a desktop," Dell spokesperson Amy King told NewsFactor. "Looking at those solution providers, those guys who are tending to buy white boxes, Dell saw the opportunity to provide non-Dell-branded, high-quality, low-cost desktops," she added. On Friday, the company will release its first unbranded PC, a white-box 510Z with an Intel ( Nasdaq: INTC - news) Celeron processor. The computer will retail for a starting price of $499 without a monitor. Growth Beyond the Brand With the U.S. PC market stagnant in both the consumer and business segments, companies are looking for new markets in which to peddle their wares. "In the U.S., we're even starting to run out of grandmothers without a PC," Aberdeen Group chief research officer Peter Kastner told NewsFactor. "While [Dell] is picking up market share at a great rate -- we're talking 3 percentage points in the last quarter -- in both the business and consumer space, there is a huge competitor out there called white boxes." Unbranded computers captured 58 percent of the worldwide PC market last year, according to a study released earlier this summer by research firm IDC. King noted that CEO Michael Dell has set an initial goal for his company's white-box initiative: 1 percent of Dell's overall revenue. Shift in Responsibility While the direct sales model has proven effective for Dell, King said the company's new strategy of selling to PC dealers is an extension of that concept. "The same principles apply. There will be no price protection or channel inventory buildup as a result. It's build-to-order, direct to the solution provider," she said. In addition to using existing sales and distribution channels, the new strategy offers another benefit for Dell, Kastner noted. He said the company now has an opportunity to increase manufacturing volumes and lower its cost per unit while "passing off all the support and warranty to the distribution channels." "At the end of the day," said Kastner, "they are not responsible for the box."

To: wanna_bmw who wrote (169653)	8/20/2002 7:11:22 PM
From: herb will	Read Replies (1) \| Respond to of 186894

Wbmw, “simply have so many on hand that weren't selling, that they needed to come up with new ways to dump the suckers off”. I think you have that hammered tight. According to the following article the high performance Athlon XP processor sells for the lets get these suckers out the door move out price of $549 plus a $100 rebate to boot. “AMD's high-performance Athlon XP processor, its latest salvo against dominant rival Intel will power the new HP-Compaq D315 Business PC geared toward small and medium-sized companies. With 266 megahertz of front-side bus and double-data rate SDRAM, it lists for $549 plus a $100 rebate” thestreet.com Herb