Dell’s Cheap China Computer

WSJ writes:

Chief Executive Michael Dell said the new computer, with a base price starting at about $335, would be sold first in China, then other countries, including India and Brazil.

The computer, which Dell calls the EC280, “was designed with China and other key markets in mind,” Mr. Dell said. He said Dell is striving to “adjust our business to meet the needs of customers in fast-growing and emerging markets.”

Designed by engineers in Shanghai, the EC280, unveiled yesterday, features an Intel 205 microprocessor and will cost from 2,599 yuan to 3,999 yuan ($336 to $517), depending on the specifications of the monitor, hard drive and memory chips.

Lenovo, which dominates the Chinese consumer-PC market, has found an even cheaper way to get computers to people with low incomes. The company has teamed up with Microsoft Corp. to offer a “pay as you go” computer model that puts a PC in a consumer’s hands for an upfront price of about $150. Part of the computer will be financed by a bank loan. The loan is paid back over time as the consumer buys computer cards — similar to phone cards — that give them a set amount of time on the computer and eventual ownership of it.

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Rajesh Jain

An Entrepreneur based in Mumbai, India.