For Dell, will luxury PCs boost profits?

From TechRepublic:

Dell, the low-cost king, may be trying to fatten up its margins by going after the top end of the PC market.

The Round Rock, Texas-based company on Wednesday unveiled its XPS brand, a luxury line of computers that will compete head-on with high-end PC makers like Alienware and even Apple Computer.

Some analysts interpret the move as an indication that Dell, which rocketed to the PC industry’s top spot by building an efficient manufacturing operation that enables it to sell computers for less than its competitors, wants to feast on the fatter margins that come with selling snazzier gear. Prices for the XPS systems start at $1,099, while prices for the long-running Dimension PC line can go as low as $400.

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