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Dell Unveils XPS Adamo

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By: Zacks Equity Research
November 09, 2009 | Comment(s): 0
Recommended this article (6)
DELL | HPQ

Dell Inc.
(DELL - Analyst Report) finally launches the much awaited XPS Adamo laptops, the second product in the Adamo series. The company is expected to begin the shipment of the world's most sleek laptop this month. At a 0.4 inch thickness, it is thinner than any other notebook on the market, weighing 3.3 pounds. It weighs around 3.3 pounds. The laptop provides 13.4-inch high-definition display, runs on a low-power Intel Core 2 Duo processor at 1.4 gigahertz, has a 128 gigabytes storage space and has a 4GB DDR3 800 memory.

The notebook will cater to customers who are more inclined towards making a style statement rather than being concerned with the technical specification of the machine. So the pricing of the product is set much higher at $1,799, above the $600 to $900 price range for mainstream notebook machines. The company revealed the picture of the product more than a month ago, before revealing product specifications recently. The machine will be running on Windows 7 operating software, which help the computer perform well.

According to the technology research firm, IDC, Dell is not very strong in the notebooks and netbooks segment. Dell's competitor, Acer, is emerging as a strong contender in this segment. Acer launched the Ferrari line of notebooks, which were co-branded with the famous Italian sports car manufacturer Ferrari, in 2003. Acer also bought Gateway, which owned E-Machines, in August 2007, a move that poses serious challenges to Dell. Acer is focusing strongly on the netbook and notebook segment, which is a fast-growing section of the PC market. Another competitor, Hewlett-Packard (HPQ - Analyst Report), has been taking share away from Dell in the consumer market over the past few years, apart from introducing new notebook at regular intervals.

So to grab a greater marketshare of this notebook segment, the company has introduced Latitude Z series, Inspiration series and now the Adamo series of laptops at regular intervals. We believe this new laptop will attract customers from a niche market although we are a little apprehensive about the high price of the product as the notebook segment is quite price sensitive.

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