Dell Inc. will stop its practice of sending low-end computers to customers homes without charge in order to cut costs, the company said on Thursday. Starting on October 10, Dell"s free shipping offer on basic models will apply only to people willing to pick up their computers at the post office, said Jennifer Davis, spokeswoman for Dell"s U.S. consumer business. Customers will have to pay extra for home delivery.
Dell"s direct sales model helped it become one of the lowest-cost computer makers as it bypassed retailers. But aggressive price-cutting caused the Round Rock, Texas-based company to miss analysts" revenue-growth forecasts last quarter. Now, Dell wants to trim costs and boost revenue. On Wednesday, Chairman Michael Dell unveiled a line of high-powered luxury desktop computers and notebooks starting at $1,099 compared with $299 for the lowest-priced models on the company"s Web site.