Dell to sell PCs at Wal-Mart in retail drive

(Adds details on pricing, Dell's plans for other markets)

BOSTON, May 24 (Reuters) - Dell Inc. (DELL.O) plans to start selling personal computers at 3,500 Wal-Mart (WMT.N) stores in the United States and Canada as of June 10, launching a major drive to sell through retailers, the companies said on Thursday.

The move represents an attempt by Dell to better compete with Hewlett-Packard Co. (HPQ.N), which has overtaken Dell as the world's No. 1 PC maker, partly through a strategy of selling in the United States through major retailers including Wal-Mart, Circuit City Stores Inc. CC.N and Best Buy Co. Inc. (BBY.N).

Dell currently relies mostly on a direct sales model via the Internet, mail or phone orders, though its products are available in limited quantities through some retailers, such as Costco Wholesale Corp. (COST.O).

Wal-Mart plans to sell two Dimension multimedia desktop computer models that are currently available directly from Dell in bundles for under $700. Officials from both companies declined to say how those bundles will be equipped. They will be available at the company's Wal-Mart stores and its Sam's Club chain.

"While we can't get into specifics, in the coming quarters there will be additional activity in support of this move into global retail," Dell spokesman Bob Pearson said. "Today's announcement with Wal-Mart represents our first step. Stay tuned."

He said the company plans to add additional retailers in its top 10 to 15 markets. Those countries include the UK, Germany, France, Japan, China, Brazil and Japan.

((Reporting by Jim Finkle, editing by Tim Dobbyn; jim.finkle@reuters.com, Reuters messaging: jim.finkle.reuters.com@reuters.net, + 1 617 367 4164)) Keywords: DELL WALMART/

(C) Reuters 2007. All rights reserved. Republication or redistribution ofReuters content, including by caching, framing or similar means, is expresslyprohibited without the prior written consent of Reuters. Reuters and the Reuterssphere logo are registered trademarks and trademarks of the Reuters group ofcompanies around the world.nN24349716