Dell unveils new Hi-End line of computers

Dell Inc. on Wednesday refreshed its Hi-End XPS line of computers for gamers and other demanding users.

The XPS 200, 400, and 600 desktop PCs start at $1,099, nearly three times as much as Dell's cheapest PC. A maxed-out XPS can easily top $6,000. The XPS M170 laptop computer starts at $2,699.

The line comes standard with 17-inch LCD monitors, Windows Media Center software and one-year warranties, as opposed to the 90-day warranty on the cheaper Dimension line.

XPS customers also have their own dedicated technical support telephone and chat lines.

Dell grew to a multibillion dollar enterprise by keeping its supply chain tight and its margins low. However, in recent years it has shown interest in expanding into the high end of the market, where margins aren't quite so low, reports Business Week.

According to Washington Post the product introduction comes after Dell, the world's largest PC maker, in August reported second-quarter revenue that rose less than analysts had expected.

Chief Executive Kevin Rollins at the time said prices for Dell's PCs were "down more than we would have liked" but added that the industry wasn't experiencing a pricing problem.

Chairman Michael Dell said at the products' unveiling on Wednesday in New York that the company expects to grow faster than the market. "We think we will continue to gain share," he said.

The new computers address increasingly savvy computer customers who want features for playing graphics-intensive games, editing digital photos and videos and coordinating music and video entertainment, Dell said.

"As the PC becomes a core, central appliance for the house, the entertainment hub for the home, you're seeing people reconsider what they want for the PC and how much they want to spend," said Mike George, vice president of Dell's U.S. consumer business, in an interview.


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