 Dell's slimmed-down manufacturing helps it stay cheap |
Dell, the computer giant known for its aggressive pricing, has again slashed its prices in an attempt to reinforce its global market lead. Dell's prices will now fall by up to 22%, taking its best-selling desktop computers down as low as $550.
Dell has won market share by competing on price, something it can do thanks to selling directly to the public, and tailoring manufacturing closely to demand.
But the company's move comes only days after Hewlett-Packard, its closest rival, announced a loss caused by over-eager discounting.
'Serendipitous'
 |  The PC market is looking increasingly like a two-horse race  |
The timing of Dell's move is no accident: analysts say it is intended to position the company ideally for the back-to-school season, a time of peak demand for computers. According to the firm, the timing was "serendipitous".
"When we see an opportunity to lower prices, we do it," Dell spokeswoman Wendy Giever said.
The markets were unimpressed, sending Dell shares down by 2% in late Wall Street trading, amid fears of a sector-wide slump.
The personal computer market, long a source of unstinting growth, has turned sour in the past couple of years, as demand levelled off and prices fell sharply.
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