Dell Cuts Corporate Desktop Prices

Tries to keep up with competitor Compaq.

Dell announced today that it is cutting prices on its OptiPlex line of corporate desktops by up to 12 percent, following a reduction last month of up to 16 percent on the same line. This is the fifth price-cut announcement this year on OptiPlex PCs. Prices on some OptiPlex systems have dropped as much as 56 percent since January.

According to Scott Miller, an analyst with Dataquest, Dell%squots price reductions are likely in response to Compaq%squots cuts last week of up to 39 percent on a variety of its Deskpro and ProLinea models. %dquotDell is trying to maintain consistent positioning relative to Compaq,%dquot said Miller. %dquotCompaq is putting increasing pressure on the industry by designing systems to take advantage of a velocity business model, and Dell is trying to keep apace.%dquot Although we%squotre not likely to see a price war between the two companies, Miller says we can expect a continued erosion in the desktop PC market.

Today%squots reductions are effective immediately in the U.S., with the biggest cuts on systems with 200 megahertz Pentium processors. Dell%squots OptiPlex PCs are designed for use in complex network environments by business, government and education customers. These customers account for more than 90 percent of Dell%squots sales.

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