March 30, 2002

Dell: Expert on Lower Pricing

Dude, you've got new Dell pricing (ZDNet)
Last year, Dell cut its PC prices relentlessly. In 2002, pressured by rising component costs, it's taking another tack: tweaking configurations of existing machines to avoid upping prices.

My spin: Dell never ceases to amaze me - it's really serious about cutting prices and offering low cost but great PCs. So now that they've squeezed every last cent from the PC hardware/software to make it as low cost as possible they've found another way to cut the cost of a PC - by changing how configurations are offered. For example - by simply not offering a 1.1Ghz chip, and only having available a 1.2Ghz chip they can charge more, since the customer is getting a faster chip, without getting less money by offering a slower chip option.

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