A typically smart move from Dell, which has unveiled a small PC designed specifically for China.
Or rather, for the millions of first-time Chinese PC buyers with limited budgets, space and needs.
The basic specification for the Dell EC280 is hardly likely to excite technofiles -- it sports a low-end Intel Celeron processor and Microsoft Windows XP Home Edition. But with a starting price of just 2,599 yuan, it is a lot more affordable than more conventional PCs.
Dell has astutely realised that there is a huge untapped market in China with first-time buyers who are attracted to a western-branded PC but don't need all the features and certainly don't want to pay western prices.
The product was developed by engineers at Dell's China Design Centre in Shanghai to fit this requirement. Dell's CEO Michael Dell was in Shanghai earlier this week to unveil the EC280 as well as talk up Dell's new-found interest in China. He said:
This is a product designed first for the demands of Chinese customers. Today there are one billion people online worldwide, and many of the world's second billion users are right here in China. We intend to earn their confidence and their business."
As well as limited budgets, Dell has realised that many Chinese homes don't have a lot of space.
The EC280 has been shrunk to occupy one eighth the space of a traditional desktop PC. The trick has been accomplished by eliminating all but one of the expansion slots found in conventional PCs.
Power consumption has also been cut back which means the EC280 runs cooler and quieter than conventional PCs.
The new product is offered in two hardware options and three display choices: 17- and 15-inch LCD displays or a good old-fashioned 17-inch CRT for those who miss the glow of cathode rays.
Buying over the internet or by phone are practices that are nowhere near as extended in China as they are in the west. Nevertheless, Dell hopes that Chinese consumers will warm to its legendary direct sales model.
But just in case, it has two "customer experience centres" in Chongqinq and Nanjing for those who want to see the EC280 in action before buying.
The Chinese PC market is second only to that of the US in size and grew 26% last year. The leader is Lenovo followed by Founder Technology, while Dell jostles with HP for third place.
For more on the Dell EC280, read this piece by Bruce Einhorn, BusinessWeek's excellent technology writer.
