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January 27, 1998


By CBR Staff Writer

Dell Computer Corp is cutting prices across the board on its PowerEdge line of enterprise and departmental servers and workstations in the US only for now. It is slashing the price of its enterprise PowerEdge 6100 by up to 28%, while the PowerEdge 2200 workgroup server launched only a month ago (CI No 3,313), is being cut by around 17%. Dell claims the price cuts are possible due to constantly improving efficiencies resulting from its fabled direct sales model. According to rival Compaq Computer Corp – which, of course is riding high at the moment on the back of a record quarter’s results last week and the acquisition of Digital Equipment Corp announced on Monday (CI No 3,334) – is outselling Dell across the board and has also managed to cut its prices as a result of its recent build-to-order progam and the benefits of cheaper components from the troubled Asian market. Compaq now has its targets very firmly set on the mid-range enterprise market, filling the gap between its desktop business and the high end it inherited with Tandem Computers Inc, and this will no doubt not be lost on Dell.

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