Dell Reduces PC and Notebook Prices ..... Again!

Efficiencies of business model deliver best value for customers

SYDNEY - October 17, 2001 - Dell has used the efficiencies of its business model to drop prices on its family of Latitude notebook and OptiPlex desktop computers, in some cases by up to 13 per cent. It has also reduced prices on the Precision range of graphical workstations.

"A unique feature of Dell's business model is our low inventory of component parts," said Michael Gibson, Managing Director, Dell Computer Australia and New Zealand. "As we average only four days of component inventory at any one time, we are able to rotate our stock three or four times a month, taking advantage of cost reductions as they occur.

Component prices decline by approximately one per cent per week.

"It takes only a matter of hours to manufacture a custom-built PC or notebook in our factory in Malaysia and nothing is produced unless we have a confirmed customer order. The equipment is built using the latest components at the latest prices and is shipped direct to the end user, typically in 7 working days," he added. "No other vendor can consistently deliver high volumes of product, built to specification, as efficiently as Dell."

These most recent price declines mean that Dell has averaged a significant downward price move every month this year.

"We have a distinct cost advantage over our competitors and can use this to continually drive prices down while remaining profitable," added Simon Johnson, Marketing Director, Dell Computer Australia and New Zealand. "A balanced portfolio of profitability, liquidity and growth has always been part of Dell's mantra.

In the current climate of industry consolidation and confusion, the market is appreciating the importance of Dell's financial health, stability and long term viability," he said.

"Our small business and consumer customers also benefit. Through our direct model we are able to offer a different brand of machine, but the same value proposition of ever declining costs and prices," he added.

Dell recently introduced new models to its client product portfolio for the corporate, government and educational markets with the addition of the OptiPlex GX240 personal computer based on the latest Intel? Pentium 4 processor, the Latitude V700 budget priced notebook and the Latitude C610; the company's latest notebook, offering wireless networking as a standard feature.

Dell also broadened its offering in the dedicated workstation space with the introduction of the Precision 340, the first model in Dell's market leading workstation family that is available in a small form factor chassis.

Prices for the OptiPlex GX240 Pentium 4 based personal computer start at near $2,500 (including GST) while the Latitude C610 breaks the $4,300 price barrier.

About Dell

Dell Computer Corporation (Nasdaq: DELL) is the world's No. 1 computer systems company and is a premier provider of products and services required for customers to build their information-technology and Internet infrastructures. The company's revenue for the past four quarters totalled US$32.6 billion.

Dell ranks No. 48 on the Fortune 500, No. 122 on the Fortune Global 500 and No. 7 on the Fortune Global "most admired" lists of companies. Dell, through its direct business model, designs, manufactures and customises products and services to customer requirements, and offers an extensive selection of software and peripherals.

www.dell.com.au 

 

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