Dell Inc. (DELL) recently launched a mobile workstation named Dell Precision M6500, which it claims to be the world’s most powerful mobile workstation. The product is specially targeted at creative persons, animation professionals, designers, engineers and other professionals associated with creative designing. The company has priced this product at $2,749.
 
This newly introduced mobile workstation will have a memory scalability of up to 16GB supporting the DDR3 1600MHz memory, which enables it to process large amounts of data simultaneously. This apart, the workstation comes with an Optional Intel Core i7-920XM Quad Core Extreme Edition processor and will also support 32-bit and 64-bit versions of Microsoft Windows 7, Vista, XP, along with Red Hat Linux 5.3 64-bit.
 
Notebooks are the fastest growing segment of the computing market. Consequently, management’s decision to grow its notebook portfolio is encouraging. The company has already launched the Inspiration, Studio and Adamo series of notebooks. Since these products were targeted at consumers, it was important to introduce them ahead of the holiday season. The latest introduction, M6500, is targeted at professionals. Enterprise demand for computers is not expected to gain momentum until next year. In this context, we believe the launch is timely. The DDR3 memory and compatibility with Microsoft Windows 7 brings it among the most advanced computing systems in the market today.
 
Dell has also been introducing products in other categories. Earlier this year, the company launched a series of printers that are expected to improve its position in the competitive market. Although its products are popular, the company faces tough competition from archrival Hewlett Packard (HPQ) every step of the way.
 
The company reported mediocre third quarter numbers, as EPS fell short of expectations and revenue declined on a year over year basis. However, we believe that new products, a stronger services business, opportunities in the Electronic Medical Record sector, the smart phone initiative and a revival in IT spending are factors working in its favor.
 
We maintain our Neutral rating on the stock.
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