By George Anderson
Dell has announced price cuts of up to 22 percent on computers, printers and other items it sells.
The move is not unusual for the company, according to a Reuters report.
"No. 1 PC maker Dell regularly pulls PC prices down, using its direct-to-customer sales method to undercut competition. In this case, the price cuts come during the crucial back-to-school season."
Hewlett-Packard, Dell's chief rival in the market, recently reported its first operating loss for its personal computer business. H-P attributed the loss to price-cutting and a lack of flexibility in changing prices on PCs sold through distributors.
Moderator's Comment: Does Dell's business model/distribution system provide it with inherent advantages over PC makers selling through distributors? What lessons can other retailers learn from the Dell model?
Needham & Co. analyst Charles Wolf told Reuters, "A quick response on HP's part is virtually impossible, so it could really screw up HP's plans for the back-to-school season." [George Anderson - Moderator]