TELECOM Digest OnLine - Sorted: Dell Goes Upscale With PCs For Gamers, Enthusiasts

Dell Goes Upscale With PCs For Gamers, Enthusiasts

Reuters News Wire (reuters@telecom-digest.org)
Wed, 28 Sep 2005 14:46:21 -0500

Dell Inc. is launching a line of upscale and more expensive computers
after aggressive price-cutting led to lower-than-expected revenue
growth last quarter.

The company on Wednesday is unveiling three high-powered desktop
computers and a notebook "aimed at tech enthusiasts, gamers and buyers
who prefer the best products, services and individualized support,"
Dell said in a statement.

The new XPS series computers start at $1,099 and a notebook version
starts at about $2,700. That compares with desktops selling for as low
as $299 on the company's Web site.

In addition, Dell is introducing its first high-definition
televisions, with a 50-inch model priced at $3,799 and a 32-inch at
$1,799.

The roll-out comes after the company in August reported second-quarter
revenue that rose less than analysts had expected.

Chief Executive Kevin Rollins at the time said prices for Dell's PCs
were "down more than we would have liked" but added that the industry
wasn't experiencing a pricing problem.

Dell is offering expanded services to customers who buy the new
products, making available "highly trained" agents assigned to
individual customers, according to the Round Rock, Texas, company's
statement. Customers can also get quick answers through online chats
with product advisors.

Asked about reports of rising consumer complaints recently, Rollins
said his company closely tracks such reports and its data show
customer service trends have been improving, not declining. Because
Dell sells an ever-greater number of PCs each year, the absolute
number of customer service complaints may be growing, but as a
percentage of the overall number of customers, Dell's customer service
continues to improve, he said.

Dell is scheduled to introduce the products Wednesday at a briefing in
New York City attended by Chairman Michael Dell.

Copyright 2005 Reuters Limited.

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