Dell inks Best Buy deal

Dell Inc has agreed a deal with US retailer Best Buy to sell computers in its stores.

Although Dell's business model to date has been dominated by direct sales to customers via phone and online orders, its revenue has been falling - as much as 26 per cent in the six months to August 3 compared to a year earlier.

According to a report on CNN Money Dell will sell its XPS and Inspiron desktop and notebook products in 900 stores across the US, which will add to an existing presence in around 3000 Wal-Mart stores and 1400 Staples locations - that's on top of other retailer deals in place in Japan, China and Europe.

The Best Buy deal hasn't been agreed in time for the pre-Christmas sales, however - a move that one analyst feels was an oversight.

"Gosh, it would have been nice to have this available about a month ago so they could have taken advantage of [post-Thanksgiving's] Black Friday," said Forrester Research's J P Gownder.

"This is very overdue," he continued. "Even if this cannibalizes some of [Dell's] direct sales, they'll be able to compete head-to-head for market share, because right now they're getting their lunch eaten by HP. Dell had to make this move. They're haemorrhaging in the consumer market."

Shares in Dell and Best Buy both jumped slightly following the announcement, and currently stand at USD 24.95 (up 2.6 per cent) and USD 52.71 (up 1.72 per cent) respectively.