Why Desktop Freebies?
The company made the desktop move to preserve its market share in high-end, high-margin computers, says Charles Smulders, an analyst at Gartner in San Jose, California. “Dell needs to keep these configurations highly competitive, as buyers in this segment are more knowledgeable regarding machine specifications than buyers of Dell’s mainstream lines,” he says. Seeking a competitive advantage, Dell made the move when it saw prices continue to fall for DRAM (dynamic RAM) and other storage technologies. Indeed, Dell says the new machines are aimed at gamers, tech enthusiasts, and buyers who seek product excellence. The new XPS desktop systems will have Intel dual-core processors, Microsoft Windows XP Media Center Edition 2005, and a 15-month security subscription for virus and spyware protection.
