Close
  • Latest News
  • Big Data and Analytics
  • Cloud
  • Networking
  • Cybersecurity
  • Applications
  • IT Management
  • Storage
  • Sponsored
  • Mobile
  • Small Business
  • Development
  • Database
  • Servers
  • Android
  • Apple
  • Innovation
  • Blogs
  • PC Hardware
  • Reviews
  • Search Engines
  • Virtualization
Read Down
Sign in
Close
Welcome!Log into your account
Forgot your password?
Read Down
Password recovery
Recover your password
Close
Search
Logo
Logo
  • Latest News
  • Big Data and Analytics
  • Cloud
  • Networking
  • Cybersecurity
  • Applications
  • IT Management
  • Storage
  • Sponsored
  • Mobile
  • Small Business
  • Development
  • Database
  • Servers
  • Android
  • Apple
  • Innovation
  • Blogs
  • PC Hardware
  • Reviews
  • Search Engines
  • Virtualization
More
    Home Latest News
    • PC Hardware

    Dell Embraces White-Box Arena

    By
    eWEEK EDITORS
    -
    August 26, 2002
    Share
    Facebook
    Twitter
    Linkedin

      Dell Computer Corp., reversing its long-held strategy of dealing directly with customers, is now offering unbranded, low-cost PCs to U.S. white-box makers, essentially smaller vendors that can relabel the PCs as their own brand.

      Dell, which has long spurned the idea of selling its products through third parties, said last week it hopes to garner about $380 million in sales over the next 12 months by tapping a U.S. commercial white-box market that accounts for about $3 billion in annual revenue.

      “This is a small-business initiative,” said Amy King, a Dell spokeswoman at the companys headquarters in Round Rock, Texas. “In studying the market, we noticed that about 40 percent of the desktops in the small-business space are from white-box vendors, so were looking at this as an opportunity to penetrate that space.”

      Starting late last week, Dell began offering an unbranded PC, the White Box 510D, to small computer vendors and resellers, starting at $499 for a system configured with a Celeron 1.7GHz processor from Intel Corp. The low-cost, configurable systems are available only to registered PC vendors and resellers approved by Dell.

      While the computer maker hopes to expand business, others contend the deal could backfire by enabling smaller competitors to lure away current or potential Dell customers. “I think, more than anything else, Dell just did a big favor for the white-box industry by legitimizing that non-name-brand computers are a … business alternative for customers,” said John Sheaffer, chief executive of Sysix Cos., in Westmont, Ill., which resells computing systems from major vendors such as Hewlett-Packard Co., IBM and Sun Microsystems Inc.

      “I think there are a lot of major companies interested in using white-box makers, but, for various reasons, chose to stick with Dell, who are now going to reconsider that decision,” Sheaffer said.

      While not widely known as top-tier PC makers such as Dell, HP and IBM, white-box makers continue to have a relatively strong presence in the highly competitive U.S. market, accounting for slightly less than a third of all PC sales, according to International Data Corp.

      “Many companies rely on their white-box vendor for their IT needs, trusting them to select the hardware and software suited for their businesses and then installing and maintaining that equipment,” said Loren Loverde, an IDC analyst in Miami. “They provide crucial support for many companies that might otherwise not be able to afford it.”

      eWEEK EDITORS
      eWeek editors publish top thought leaders and leading experts in emerging technology across a wide variety of Enterprise B2B sectors. Our focus is providing actionable information for today’s technology decision makers.

      MOST POPULAR ARTICLES

      Big Data and Analytics

      Alteryx’s Suresh Vittal on the Democratization of...

      James Maguire - May 31, 2022 0
      I spoke with Suresh Vittal, Chief Product Officer at Alteryx, about the industry mega-shift toward making data analytics tools accessible to a company’s complete...
      Read more
      Cybersecurity

      Visa’s Michael Jabbara on Cybersecurity and Digital...

      James Maguire - May 17, 2022 0
      I spoke with Michael Jabbara, VP and Global Head of Fraud Services at Visa, about the cybersecurity technology used to ensure the safe transfer...
      Read more
      Applications

      Cisco’s Thimaya Subaiya on Customer Experience in...

      James Maguire - May 10, 2022 0
      I spoke with Thimaya Subaiya, SVP and GM of Global Customer Experience at Cisco, about the factors that create good customer experience – and...
      Read more
      Big Data and Analytics

      GoodData CEO Roman Stanek on Business Intelligence...

      James Maguire - May 4, 2022 0
      I spoke with Roman Stanek, CEO of GoodData, about business intelligence, data as a service, and the frustration that many executives have with data...
      Read more
      Cloud

      Yotascale CEO Asim Razzaq on Controlling Multicloud...

      James Maguire - May 5, 2022 0
      Asim Razzaq, CEO of Yotascale, provides guidance on understanding—and containing—the complex cost structure of multicloud computing. Among the topics we covered:  As you survey the...
      Read more
      Logo

      eWeek has the latest technology news and analysis, buying guides, and product reviews for IT professionals and technology buyers. The site’s focus is on innovative solutions and covering in-depth technical content. eWeek stays on the cutting edge of technology news and IT trends through interviews and expert analysis. Gain insight from top innovators and thought leaders in the fields of IT, business, enterprise software, startups, and more.

      Facebook
      Linkedin
      RSS
      Twitter
      Youtube

      Advertisers

      Advertise with TechnologyAdvice on eWeek and our other IT-focused platforms.

      Advertise with Us

      Menu

      • About eWeek
      • Subscribe to our Newsletter
      • Latest News

      Our Brands

      • Privacy Policy
      • Terms
      • About
      • Contact
      • Advertise
      • Sitemap
      • California – Do Not Sell My Information

      Property of TechnologyAdvice.
      © 2022 TechnologyAdvice. All Rights Reserved

      Advertiser Disclosure: Some of the products that appear on this site are from companies from which TechnologyAdvice receives compensation. This compensation may impact how and where products appear on this site including, for example, the order in which they appear. TechnologyAdvice does not include all companies or all types of products available in the marketplace.

      ×