12 July 2006 — San Fransisco(CA): Dell is to unveil a new pricing initiative tomorrow that it claims will make it easier for consumers and small business to deal with the company.
Dell has come under increasing pressure recently from rivals such as Hewlett Packard (HP) who have targeted the consumer market with lower prices as a result of cheaper components and more efficient manufacturing.
Analysts believe the strategy switch will probably include price cuts as they seek to stem the decline in operating margins in its consumer and small business markets, which accounts for about 15 percent of the company’s total revenue.