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Dell to announce pricing change for their computers in United States
World’s largest personal computer maker Dell is due to announce a new pricing scheme of their products in the US market as it aims to change their ways of promoting inexpensive, bare-bones computers.
The company is suffering from falling profits due to lack of margins. Dell would now try to sell slightly more expensive machines to home and small business users.
Dell said in a statement on this new initiative: “It will pertain to how we can create better value for customers who opt to buy products and services from us.”
They are due to come out with the new announcement during a conference call hosted by Ro Parra, senior vice president and general manager for Dell’s Home and Small Business Group.
Market analysts believe that most cheap computers promoted by the company end up costing more to the end customers as they lack the hardware needed to run current generation software applications.
Nicole D’Onofrio, an analyst with Current Analysis spoke about Dell in a note: “Dell’s pricing strategy has been a game of smoke and mirrors. They often showed a low entry-level price, but those systems were bare-bones PCs, not necessarily competitive to what you’d find at Best Buy or Circuit City