Thursday, August 21, 2003

WSJ.com - Dell Price Cuts Put Squeeze on Rival H-P

WSJ.com - Dell Price Cuts Put Squeeze on Rival H-P "Dell Inc. slashed its personal-computer prices across the board, taking aim at rival Hewlett-Packard Co. and signaling a brutal new phase of competition in an industry that has just begun to pick itself off the floor.
Analysts say Dell's move is an aggressive effort by the world's largest PC maker to grab more market share from H-P, which said earlier this week that its personal-computer unit slipped into the red in its fiscal third quarter ended July 31 because of overly aggressive price-cutting.
Trying to take advantage of a competitor that has stumbled is becoming a common tactic in this downturn, especially among low-cost companies that can use their efficiency as leverage to gain new customers. Low-cost, low-fare airlines such as JetBlue Airways have drawn passengers that used to fly the large network carriers, while low-cost retailers such as Wal-Mart Stores Inc. push down prices to lure shoppers from traditional grocery and department stores."

Example of latest Dell pricing: $499 desktop with 15" flat panel display.

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