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Dell's Cheap 'Vestro' PCs Target Emerging Markets


Hardly an eyesore
for the price

Setting its eyes on a neglected niche, Dell is marketing a suite of low-cost computers to emerging markets like China and India.

Dell's Vestro units — two notebook and two desktop PC models — were built in Shanghai and shall target small business owners. Prices start at 3,299 yuan ($475) for the notebooks and 2,999 yuan ($440) for desktop PCs. They will be sold in 20 countries across Asia, Africa and Latin America, according to The New York Times.

''Our success is going to be largely dependent on our ability to expand globally,'' admitted Steve Felice, Dell's president in the Asia-Pacific regions, but the prospects look promising. Q1 sales for Dell in China, India, Russia and Brazil augmented to 58 percent — 10 times the US rate. Dell expects 20-30 percent annual growth in those markets in the next few years.

Not to say there aren't rivals. Lenovo, which purchased IBM's PC unit in '05, is also targeting China's less plush markets. Last year the Beijing-based company released a basic PC priced at 1,499 yuan ($220). This year, it released a costlier expensive line of design-oriented computers under the label Ideapad. Hoping to target folks in wealthier countries, the units cost between $799 and $1199 — a price range that competes with Dell's Stateside offerings.

But competition keeps one relevant. Today Dell ranks #7 in a list of 2008's most influential technology vendors.

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