In a move to increase sales in China, Dell Computer is selling its 4500S Dimension personal computer for the relatively low price of Yn7,998, Reuters reported. Dell, the world's second largest computer maker, currently accounts for less than 1 per cent of total computer sales in China, and the low price is an attempt to increase market share.
Analysts quoted by Reuters said that Dell's method of selling direct rather than through stores would not succeed in China, where computer buyers need more assistance. Legend, China's largest computer maker with 28 per cent of the market, has lowered the price of one of its top consumer models by 14 per cent. Billed as a promotion to coincide with the National Day holiday, the offer was later extended further into October. A Legend spokeswoman played down talk of a price war by saying that price cuts would not harm margins as they were merely passing on reductions in component costs.