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Dell cuts workstation prices

The cost of a Dell workstation with a pair of 266-MHz Pentium II chips drops by 20 percent, the first price cut since Dell entered the market in July.

Dell Computer (DELL) reduced workstation prices up to 20 percent, the first price cuts since it entered the workstation market back in July.

Dell's WorkStation 400 line uses Microsoft's Windows NT Workstation operating system and Intel Pentium II processors and includes either single or dual 266-MHz and 300-MHz chips.

These cuts follow Pentium II price reductions today by Intel. (See related story)

Intended for use at financial firms, a 400 workstation with two 266-MHz Pentium II processors, 256MB of memory, a 4GB hard drive, CD-ROM drive, a network card, and two monitors will drop 20 percent to $5,981 from $7,521.

A workstation aimed at technical markets with a 300-MHz Pentium II, 128MB of memory, a 4GB hard drive, a network card, 17-inch monitor, and a high-end graphics card from Matrox is now priced at $4,528, down from $5,398, a reduction of 16 percent.

International Data Corporation (IDC), a major marketing research firm, predicts Windows-Intel workstation sales will be double that of workstations running RISC processors and the UNIX operating system in 1997.