Dell Cuts Prices After Costs Drop

Dell Computer Corp., the biggest direct seller of personal computers, said it cut prices for some desktop PCs used by businesses, schools and governments after its parts costs fell. Dell reduced its OptiPlex GX110 system price about 7% to $799, from about $855, and it cut the OptiPlex GX100 price about 6% to $599, from about $635, the company said. The GX110 includes Intel Corp.’s Pentium III processor, and the GX100 comes with Intel’s less-powerful Celeron chip. Neither system includes a monitor at these prices. The price cuts stem from lower costs for components, and Round Rock, Texas-based Dell typically passes on the savings to its customers, a company spokesman said. The price cuts come amid a shortage of PC components. Dell shares shares closed off 63 cents at $39.94 on Nasdaq.