Dell Hopes to Take More of the Education Market

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. Dellhopes tomake further gains in the education market by cutting prices and helping schools create digital classrooms, chief executive Michael S. Dell said Monday.

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.

 

How sad... Teaching at a high school where the Business Administrator has minimal dollars to spend and is being told to do it on the cheap cannot help but buy Dells and Gateways. It was and still is penny foolish and pound stupid. These machines (if you can still call them that after the kids work on them for a year) have to be replaced after two years for various reasons. In addition, the network seems to crash at least two to three times a week and the tech person is called in almost daily to keep these plastic boxes of mush running. So during final exams, only 15 out of 40 computers in the labs were working.
Is this how they do things out in the real world? That's the main reason they give for having Microsoft Windows and Dells, Gateways or the other cut-rate brands.
I am the yearbook advisor and a special ed teacher. I have three computers running that have not needed any technician to fix a problem in the 12 years I've had computers. the oldest is a Power Mac 7200 (circa 1996), a Blueberry iMac (1999) and a new iMac (2003). Before these I had LC III's and an LC 575. They are still running fine also... but slowly... None have ever needed a tech to do anything but add RAM. And STILL, I can't get the administration to even look at eMacs at $620 each. This is what passes for intelligence these days - "They need to work on computers that are out there in the world." Never mind that most don't work well. I guess they need to get used to frustration and lower production. Appalling!!!