Dell Abandons Webpc - Product Information

EDP Weekly's IT Monitor, July 17, 2000

Dell Computer has terminated its production of the WebPC, the sub-$1,000 Internet access machine. The WebPC was introduced less than 9 months ago, and never caught on with consumers. Dell did not disclose the level of its write off in this venture.

The three model line of WebPCs was introduced with substantial publicity in late November 1999, as the first completely consumer oriented PC with a conspicuous designed targeted at the new PC buyers. Production difficulties, precipitated by component shortages stalled the PC's debut until after the Christmas selling season and that slow start, coupled with a nearly $1,000 starting price, spelled disaster. Dell's bundling efforts designed to obscure pricing discrepancies with competitors simply was not effective. Dell will continue its effort to shift resources from consumer markets to more traditional lines of combined home and small business PCs.