Techno-News Blog Ray Schroeder, editor, OTEL - University of Illinois at Springfield

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Bobby Approved (v 3.2)
Wednesday, August 21, 2002

http://zdnet.com.com/2100-1103-954477.html

Dell taps market for 'white box' PCs
John G. Spooner

Dell Computer is seeking alliances with mom-and-pop shops to further its growth in the PC market. This week, Dell will begin offering a special, low-price desktop PC to distributors that cater to small businesses, typically companies with less than 100 employees, the company confirmed Tuesday. The Texas-based PC maker is embarking on the new plan as a way to enter the "white box" market, which it estimates to be worth about $3 billion. White-box PC sales have grown quietly over the last five years to represent roughly 30 percent of the market, according to a recent IDC report. These PCs are assembled by small outfits ranging in size from one-person or family-owned shops to larger, regional PC sellers. By offering the PCs to distributors, Dell essentially joins the party, allowing the companies to sell a $499 unbranded computer as they would if they'd made it themselves. Meanwhile, Dell can offer the dealers discounts, favorable leasing terms and other sales incentives, representatives said....

 


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