Dell business desktop down to $850

Dell will cut prices on corporate desktops computers on Monday, bringing these robust business systems to the $850 mark.

Dell Computer will reduce the prices on its high-end and mid-range OptiPlex desktops targeted at large corporate customers on Monday, bringing one system based on an Intel Celeron processor to $849, or $1,048 with a 15-inch monitor. This is a reduction of 11 percent.

This G1 model includes a 333-MHz processor and a 4.3GB hard drive.

Sub-$1,000 business systems with the newest Celeron chip are already offered by both Compaq and Hewlett-Packard (HP). The chip is also popular in consumer models.

The low cost model from Dell means it's matching competitors blow for blow in the low-cost business desktop market, an area where Compaq and HP have typically been the most aggressive with pricing.

At the high end, a GX1p will fall to $1,999 from $2,199, a drop of nine percent. This packs in a 400-MHz Pentium II chip, 128MB of memory, 10GB hard drive, a networking chip from 3Com, and a 17-inch monitor.

A mid-range model will fall from $1,399 to $1,299.

"We're now selling $10 million over the Internet; corporate sales over the Internet have increased to a hefty portion. Due to those efficiency gains, we have seen quite a drop in operating expenses...that's what's driving this," said Danny Young, director of marketing and sales for the OptiPlex line.