Dell Hopes to Take More of the Education Market

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Dell’s share of the U.S. education market in the first quarter of 2004 was more than three times the sales of its nearest competitor, Apple Computer Inc., at 14 percent. Hewlett-Packard Co. had 11.3 percent, Gateway Inc. 6.2 percent and IBM 3.7 percent. Dell hopes to make further gains in the education market by cutting prices and helping schools create digital classrooms, chief executive Michael S. Dell said Monday.

Inspiron 8600

Dell intends to make further gains in the education market via agressive price cuts on on desktop and notebook computers this fall

Dell already controls 44 percent of the market for computers and computer equipment to U.S. schools and colleges, according to research firm International Data Corp.

So with a 44 percent share of the market already, is there room for Dell to grow?  “Sure we can grow it,” CEO Michael Dell said. “I think it’s fair to say we’re going to be growing faster than the market.”

The company plans to increase sales to schools the same way it grew in the corporate and consumer markets by undercutting rivals on price.

Shipments to schools and colleges grew 36 percent from 1999 to 2003, but Dell’s shipments more than tripled in that that time while the rest of the industry combined saw a 4 percent decline, IDC said.

Notebooks account for about one-fourth of Dell’s revenue and are becoming more and more a part of sales and solutions provided for schools.

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