Dell launches PC line for small businesses

NEW YORK, July 10 (Reuters) - Dell Inc (DELL.O). on Tuesday introduced a new brand of personal computers designed for small businesses, and said it hopes to grow the unit at twice the industry rate, the latest move in its bid to boost PC sales. Dell, the world's No. 2 computer maker, said it launched the Vostro line of products, aimed at businesses with 25-or-fewer employees. Those users need PCs with fewer media features than consumers, while not as intricate as those made for larger corporations.

"It is an underserved part of the market," Dell's Vice President of Small/Medium Business Frank Muehleman told Reuters. "We think there is an opportunity for us to grow at least two times the market's rate of growth.

Citing data from research firm IDC, he said growth in the the small to medium business PC market is about 7 percent to 10 percent each year, and Dell already has about 25 percent to 30 percent market share.

The initiative comes as Dell takes steps to boost sales of computers to consumers, the fastest-growing PC segment, as it tries to catch up with Hewlett-Packard Co.(HPQ.N), which last year displaced Dell as the largest PC maker by unit sales.

Founder Michael Dell, 42, retook the CEO job in January after sales growth slumped and the company's past accounting practices came under scrutiny by federal regulators and prosecutors.

Dell on Tuesday said it would initially sell 4 notebook models in the Vostro line starting at about $450, as well as a desktop model and several printer options.

The Vostro branded products feature very little of the pre-installed software -- such as games -- found on most consumer PCs, but will have business tools such as data back-up and specialized networking support for customers without a dedicated technology staff.

(Reporting by Franklin Paul)

((Reuters Messaging: Franklin.Paul.reuters.com@reuters.net; email Franklin.Paul@reuters.com; Tel: +1 646 223 6195. editing by Gunna Dickson)) Keywords: DELL SMALLBUSINESS/

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