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Soon: LCD TVs From Dell?

Another PC vendor is branching out into consumer electronics, analyst says.

Sumner Lemon, IDG News Service

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Dell is expected to break into the consumer electronics market this year with the release of a line of LCD television sets, according to an analyst in Taipei.

"Dell will have some alliance with Korean and Taiwanese panel vendors, and they would like to make LCD TVs," says David Hsieh, director of Taiwan market research at DisplaySearch. Dell is expected to begin selling LCD TVs before the end of this year, he adds.

Dell Doesn't Deny

The move into the market for LCD TVs marks a departure from Dell's traditional computing hardware business, Hsieh says. The analyst says it reflects the company's growing interest in the consumer electronics business and the blurring line between consumer electronics and computers.

"It's very clear that Dell wants to get more recognition in the (consumer) electronics area," he says.

A Dell representative declines to comment on the specific product, but notes that during Dell's second-quarter earnings conference call, Dell President and Chief Operating Officer Kevin Rollins mentioned TVs as one of several products Dell is thinking about introducing.

Consumer Trend

The computer company already resells LCD TVs through its Web site. Those models come from Viewsonic and Planar Systems, among others.

Dell would not be the first U.S. computer vendor to get into the market for TVs and other consumer electronics devices. Rival PC maker Gateway drew attention in the spring by announcing plans to offer a range of electronics products alongside its line of PCs, including game consoles and home theater systems. In July, Gateway introduced two new plasma display panel (PDP) televisions, as well as expanding its line of flat-panel TVs.

While LCD TVs have attracted attention for their sleek profiles and shipments have risen quickly, demand remains relatively low. That is expected to change next year when expanded LCD production capacity comes online, helping to drive down panel prices and stoking demand, Hsieh says.

"The explosion time frame will be the end of next year," he adds. "Right now is just the beginning."

Tom Krazit in Boston contributed to this report.

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