Dell to Sell PCs in Staples

Dell said Monday it will soon begin selling its PCs at Staples Inc.'s retail stores. The announcement marks Dell's second major deal with a retail chain to sell its PCs, after it already announced a similar deal with Wal-Mart earlier this year. Recently, Dell has begun partially changing course from its classic model of direct customized purchases though phone and internet. "We know our customers will appreciate the ability to see, touch and immediately take Dell products to the home or office," said CEO Michael Dell. Though Dell remains the top PC seller in the U.S., the company has lost ground overall to rival Hewlett-Packard, who leads the industry with 19% of the worldwide market share, compared to Dell's 14%. When Dell computers begin selling in Staples, the number of retail stores carrying Dell products will increase to 10,000. Shares of Dell were up 0.8% to $28.13, while Staples's shares jumped 3.8% to $22.37 on the news in midday trading Monday.

Sources: Press release, MarketWatch
Commentary: Staples: Accelerating Growth in a Decelerating Market • HP Extends Lead Over Dell in PC Sales • The End of Dell Hell?
Stocks to watch: DELL, SPLS, HPQ. ETFs: IAH
Earnings call transcript: Dell Q2 2007 , Staples Q2 2007

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