Dell to sell TVs, music gear
New York Times , , 2003
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Dell, whose strategy of direct sales and low-margin pricing has made it the No. 1 seller of personal computers, said it will begin selling consumer electronics and offering an online music service.
The introduction of products, including a portable music player and a large flat-panel television, begins a new direction for Dell, which generates 80 to 85 percent of its revenue on computer sales to businesses and is the leading seller of servers for networks.
"It's fair to say we are absolutely committed to taking the Dell efficiency model and continuing to be the value leader," said Michael George, Dell's chief marketing officer. The products also include a slimmer model of the Axim handheld computer and new software for controlling home electronics from the PC. The company would not reveal pricing, but said some products would go on sale in a few weeks and the rest would be available before the holiday shopping season.
Dell, based in Round Rock, Texas, already sells an assortment of computer products and software on its Web site, but not all of those carry the Dell logo. The strategy shift comes on the heels of Hewlett-Packard's introduction last month of a barrage of new consumer products and also the push by Gateway, another direct seller, into consumer electronics with large-screen television sets and other devices
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