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Dell cuts prices on corporate PCs

The computer maker joins a growing list of companies to reduce PC prices in the last few weeks.

Dell Computer (DELL) has cut prices up to 14 percent on its high-end corporate line, joining a growing list of PC companies that have reduced prices in the last few weeks.

Dell will not officially make an announcement on the price reductions, a company spokesperson said.

Compaq Computer triggered a price war at the beginning of this month with reductions of up to 17 percent on desktops and 27 percent on notebooks. Hewlett-Packard, Compaq's arch rival, followed suit by driving the price of its Pentium desktops as low as $931.

Although fierce competition for corporate customers is the driving force behind the price slashing, Intel has also contributed to the drop. The chip maker recently pared the price of its "classic" non-MMX Pentium processors by as much as 34 percent.

PCs in Dell's OptiPlex line are network-ready. OptiPlex computers integrate 3Com chips to connect to networks. Dell also supports a variety of networking technologies on OptiPlex that ease management of PCs in a corporate environment, such as Intel's Desktop Management Interface, the company said.

Dell price cuts
OptiPlex GS 166-MHz MMX Pentium processors
Old price $2,169 New price $1,869
OptiPlex GX 200-MHz Pentium Pro
Old price $2,495 New price $2,395

Dell said the GS series of OptiPlex with 166-MHz MMX Pentium processors have received the largest cut of 14 percent. A model with 32MB of memory, a 15-inch monitor, a 2GB hard drive, 64-bit video, an easy-to-access chassis, and SMART technology that alerts information system personnel to hard drive failures now costs $1,869.

GS models are also offered with 200-MHz MMX Pentium processors, as well as models that use the classic Pentium running at 133, 166, and 200 MHz.

Dell also prices have been cut up to seven percent for the GX Pro line of Pentium Pro desktops. These systems can come with single or dual Pentium Pro processors and factory-installed Windows NT. A typical configuration includes a 200-MHz Pentium Pro, 32MB of memory, a 15-inch monitor, a 2GB hard drive, and Windows NT.