Dell Inc. (DELL) added another feather to its cap. The PC maker recently unveiled a series of refreshed Inspiron R laptops, which hit stores on March 17. The new entrant into the Inspiron laptop family will lure customers with its look and service.
The gadget will sport Intel Corp.’s (INTC) latest Sandy Bridge processor, as well as interchangeable lids. Inspiron R will be available in 14-inch, 15-inch and 17-inch display sizes, with prices ranging from $529.99 to $579.99. With the Intel processor, Inspiron will give 13 hours of battery backup. Moreover, users can choose from a variety of designer lids, provided by Dell Design Studio. Other features include Blu-ray drives, up to 8GB of RAM, six or nine-cell batteries, and USB 3.0 ports.
According to a market source, Dell recently tied up with BrandsMart USA, a Florida-based electronics retailer, to unveil Inspiron M5030. This is the first-ever laptop in Spanish to be marketed in the U.S. In August 2010, Dell shipped its newest invention, the Inspiron M101z laptop, which is powered by Advanced Micro Devices Inc.’s (AMD) Athlon II Neo Mobile Processor and integrated ATi graphics.
Dell’s efforts to manufacture new and improved laptops at affordable prices should help it build a stronger position in the consumer market and improve its credibility after the fiasco with Intel Corp. Of course, the consumer market is a double-edged sword, where strong growth comes hand in hand with pricing and margin pressure, seasonality and much more uncertainty.
As per findings of market research firm iSuppli, Dell shipped 11.3 million PCs in the fourth quarter of 2010, immediately following Hewlett-Packard Co. (HPQ), the market leader, which shipped 15.9 million. Dell regained the second position from Acer, which was close behind, having shipped 11 million units.
However, Dell’s relative weakness in emerging markets remains and its high debt level is also a concern. Moreover, stiff competition from technology majors, such as Hewlett-Packard Co., Apple Inc. (AAPL), International Business Machines Corp. (IBM) and Microsoft Corp. (MSFT) is always a factor to consider before investing in Dell.
Dell Inc. has a Zacks #3 Rank, implying a short-term Hold recommendation.
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