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Hot off the Press Story
Tech-Edge staff report 8/20/02

Dealers sells Dells without any of the Bells.
Austin, Texas. -

Dell Computer Corp., reported Tuesday that besides selling "mail-order" personal computers directly to customers, it plans to sell generic computers to dealers who in turn sell the PCs to small businesses.

"Dell saw an opportunity," said Amy Kin Dell spokesmen.These so-called generic white box market PC's are new one for Dell, which continues to try to grab a bigger share of computer sales in a failing market with inexpensive clone PC's made primarily along the pacific rim in Asian countries like mainland China and Taiwan, such as it's Notebook line made by Quanta in Taiwan.

Beginning Friday, Dell will sell unbranded personal computers known asWhite Box D510 to dealers who serve businesses with 100 employees or fewer, King said.

In a white box market, dealers put together cheap computer parts to make and sell a customized IBM clone machine, or resells or sell someones else's generic computers. These kinds of sales account for about 30 percent of the PC market, according to IDC, a Framingham, Mass.-based market research firm.

 

 

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For a unit with an Intel Celeron processor, CD-ROM and floppy disk drive and Windows XP prices starts at $499. This does not include a monitor and the PCs can be upgraded upon request. The computer includes a one-year warranty on parts and telephone service for the dealer.

It's kinda like a dealers sell Dells without any of the Bells! But it's still a clone white box with no personality and probably

Selling more computers this way will allow the Texas company to make as much money as it would selling a Dell brand PC and is estimated it will bring in about $380 million, or 1 percent, of Dell's total revenue, King said. Dell wanted to focus on local dealers who build or purchase unbranded PCs for small businesses because it realized the market has been quickly growing. Small businesses typically cannot afford or do not have the technological resources to have internal IT departments and depend on the local dealers. Dell can help keep prices low for dealers while providing high-quality products, King said.

We wonder is the Dell Dork will be able to do a commercial for the unbranded clones like "Dude your getting a White Box" . . .




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