THE Warehouse has expanded its Dell PC line-up to include an outdated model and a cut-price notebook.
Earlier this month, New Zealand’s own discount retailer began offering an entry-level Dell Inspiron 1150 notebook at the breakthrough price of $1,399 and for the same price the Dell Dimension 4600, which was replaced with the Dimension 4700 and is no longer sold by Dell through its local online store.
The machine has a higher specification than the $999 Dell first sold through The Warehouse a year ago. It features a 2.66GHz Intel Pentium 4 processor, 80GB hard drive, a SoundBlaster Live 5.1 sound card and DVD reader and CD writer combo drive.
Peter Shirley, chair of the Computer Manufacturers Association of New Zealand (CMANZ), says although The Warehouse is selling obsolete Dell models, there is no indication the manufacturer is dumping old stock in the country.
“We are not particularly concerned. If they want to sell an obsolete model it is their choice,” he says, adding this is just another product for local assemblers to compete against.
Hardware analyst Liam Gunson at research firm IDC confirms the Dell Dimension 4600 was replaced by the 4700 earlier this year, and says the Dell Dimension 2400 The Warehouse is selling for $999 is also an obsolete model and has been replaced with the Dimension 3000. Staff at The Warehouse Group Support Office confirmed it still stocks the 2400.
Meanwhile, Hewlett-Packard says it has no plans to meet rival Dell head-on in the bargain retail space.
Although HP sells through Warehouse Stationery — the business retail arm of The Warehouse Group — and is offering a Compaq Presario 2256AP for $1,399 at Big Byte, spokesperson Kristen Blanchard says the company has no intention to look into selling through the mass retailer in the near future.
“We are not exploring this option at the moment,” she says, adding HP will continue its presence at Warehouse Stationery with both HP and Compaq-branded desktops and laptops.