Price rises off, says Dell Australia

By Newsbytes
Friday, November 10, 2000 12:41 PM
SYDNEY--Dell Australia says it's changed its mind about putting PC and server prices up reflecting the decline of the Australian dollar. The dollar is currently worth around US$0.53, down from US$0.60 to US$0.70 levels in recent years.

The company warned at the beginning of October that prices were likely to rise 5-8 percent by the end of the month--but on Wednesday it announced that it has been able to "defy market trends by keeping prices stable" on notebooks, workstations and servers.

Component costs had declined at a greater rate than the currency fell, the company explained in a media statement.

"A feature of Dell's unique business model is our low inventory of component parts", said Gary Elliott, managing director of the Australian subsidiary. "With only seven days of inventory we are able to rotate our component stock three-four times in a month, taking advantage of cost reductions as they occur."

Analysts believe that price rises may still be on the cards for some Australian vendors after the peak Christmas buying season, unless the dollar improves.

Apple Computer Australia has already raised Macintosh prices by 6-12 percent; Acer Australia has said it is considering increases; and market analysts note some "no-frills" makers are keeping prices stable but reducing specifications--for example substituting slower chips.


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