Dell credited the cuts largely to improved efficiencies in PC distribution, which relies heavily on the Web for generating sales. Declines in component costs also affected the cuts.
Dell's Internet or Internet-related sales are about $30 million a day, up from $1 million a day in June 1997. Dell includes sales made over the phone in which the customer configured the system at its Web site.
Web-related sales accounted for about 40 percent of Dell's revenue in the second quarter, and the company's goal is 50 percent by 2000.
In today's round of cuts, the 550-MHz Pentium III OptiPlex dropped the most, 18.3 percent, to $1,408 from $1,708 without a monitor. Features include 128MB of SDRAM, 4MB of integrated video SDRAM, 13.6-GB hard drive, 24X CD-ROM drive, integrated 10/100 networking, and Windows NT 4.
Dell reduced the 600-MHz model by 16.8 percent, to $1,608 from $1,908 without a monitor. This model also features a faster, 40X, CD-ROM drive.
"I think it's evidence of their strategy to gain market share," said Lindy Lesperance, analyst with Technology Business Research. "They will be increasingly price competitive balanced with profitability."
Lesperance pointed out the majority of today's cuts affected the higher of Dell's line. Dell, like other major PC manufacturers, offers a sub-$1,000 corporate PC featuring the Intel Celeron processor.