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Dell: Two chips for the price of one

The computer maker will launch workstations with two Intel microprocessors for nearly the same price rivals charge for single-microprocessor workstations.

Dell Computer will launch workstations with two Intel chips for about the same price rivals charge for single-microprocessor workstations.

Dell's move may raise questions about Dell's relationship with the top chipmaker, as rivals have in the past questioned whether the computer maker gets favorable pricing from Intel.

Dell said the pricing reflects only the company's lower costs from its lean inventory and lack of reseller fees compared with rivals.

"On the heels of incorporating the Pentium III processor, Dell is bringing extra value to customers by offering a dual-processor workstation with brand new technology at a lower price than many competitors' older single-processor-capable systems," said Linda Hargrove, vice president, Dell Precision WorkStations, in a statement.

Shares of Dell Computer, Compaq Computer, and other personal computer makers fell on February 25 amid concern that revenue growth will stagnate this year as companies slash prices to win sales.

Bloomberg contributed to this report.