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Dell unveils low-cost PCs for emerging markets
BEIJING — Dell unveiled new computers designed for businesses in developing nations today, a step executives and analysts called important to the company’s drive to boost sales outside of the United States.
The company introduced four new computers. Two notebooks will be available in more than 20 countries, starting at about $475. The cheaper of the two desktop computers — part of the company’s Vostro line — will start at about $440, including a screen.
The new models are aimed at helping Dell deepen its hold on developing markets as sales have slowed in mature markets including the United States.
“Within the world’s emerging economies, millions of new businesses are demanding just the technology they need, at the prices the can afford, from a vendor they can trust,” said Stephen Felice, Dell’s president for operations in the Asia Pacific region.
“We have high hopes for broad adoption in the 20 countries,” which include Brazil, Russia, India and China, he said in Beijing.
Dell is one of many companies offering low-price, no-frills computers in China and other developing countries.
Last year, Asustek, a Taiwanese computer-maker, released the Asus Eee PC, a line of small laptops that retail for between $300 and $500. Acer released a small notebook in July that retails in Taiwan for about $350 while Hewlett-Packard unveiled a similar product in April.
Dell’s new models are “a good move because it’s not only in emerging markets where there are high growth rates but also among small and medium businesses,” said Bryan Ma, an IDC analyst based in Singapore.
Marketing to businesses with dozens or hundreds of people is also notable because Dell has traditionally focused on winning contracts from corporations and institutions with thousands of employees, Ma said.
“Given Dell’s history, this represents a tactical move to build out its channels and reach out to more customers,” he said. “It’s the new Dell.”
The cheaper of the two new Dell notebooks — the Vostro A840 — has a 14.1-inch screen and offers the choice of several Intel processors and either the free Linux operating system or, for an additional charge, Microsoft Windows.
Equipped with a modem and a wireless card, it and a more expensive version with a larger screen are targeted at small business owners, schools and government institutions, traditionally one of Dell’s nstrongest customers.
The cheaper desktop model uses an Intel Atom processor and the Ubuntu Linux operating system. To keep costs down, it is sold with free, open source software including a “full business office application suite,” according to a company press release.
“The key thing that we did is we focused on the functionality that was required and then we didn’t add features that weren’t going to be used,” Felice said.
As millions of entrepreneurs start businesses in China and other developing countries, demand for affordable computers will spike.
Sales of computers to small and medium-sized businesses in China, currently Dell’s second-largest market after the United States, are expected to grow by more 22 percent annually for the next five years, according to research firm IDC.
Comments
By PHC
August 27, 2008 2:43 PM | Link to this
Praise Jesus and Almighty Isis!!