Dell Computer said it can still find ways to slash billions in costs and pass the savings on to customers, officials told analysts at a meeting Thursday.
"We will continue to offer the best value in the industry by far," vowed Michael Dell, chairman and chief executive of the computer maker, which is based in Round Rock, Texas. Mr. Dell said H-P will find it hard to match the low prices and make a profit. Officials for H-P disputed the claim.
Dell was able to lower costs by continually retooling its manufacturing processes. Dell has also enjoyed the advantage of a highly efficient distribution system that sells computers directly to customers, bypassing middlemen.
Now, Dell hopes to apply the same strategy it's used for PCs to more complex machines, including servers and storage devices, and to technology services, such as designing corporate networks. Major price cuts are more likely in those categories than in PCs, analysts said.
