Margin woes for notebook makers as Dell launches low-priced model
May 24, 2005
With Dell recently slashing the price of its entry-level Inspiron 1200 series to as low as US$529, notebook makers in Taiwan are worried that their margins could erode further if other international vendors launch products under a similar pricing strategy.
Dell's US$529 Inspiron, currently the lowest-priced brand-name notebook on the market, may generate strong demand from such developing markets as India and China, prompting other international vendors to follow suit, the Taiwan makers said. The makers added that notebooks in the US$500 range stand a good chance of becoming the mainstream in 2007.
Previously, the lowest priced notebooks from Top 10 brands came from Hewlett Packard (HP) and Acer and were priced at US$650-700.