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Dell Clicking With Turnaround Efforts

Dell's second-quarter sales and earnings figures exceeded Wall Street estimates, signaling that turnaround strategies launched after Michael Dell's return to the company earlier this year are beginning to pay off despite stiff competition.

Brent Bracelin, an analyst for Pacific Crest Securities, warns that favorable component prices that have kept PC makers' costs stable may not last. The company is also dealing with an internal investigation into its finances and problems in meeting demand for notebook-computer models in some colors. But Bracelin notes that Dell and its rivals seem to be following Apple's lead by competing more on design and new features than price.

Dell has also been competing by modifying its sales strategy. Long known for selling over the telephone and through its Web site, it now has deals to sell computers through Wal-Mart and other retailers. Dell spokesman Bob Pearson says the company's "retail initiative is going well, and there is much more to come worldwide."



Read the whole story at The Wall Street Journal »

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