June 8, 2007 / 7:27 PM / 12 years ago

Dell to sell notebook PCs at US Sam's Club stores

(Adds share movement, prices, details)

By Philipp Gollner

SAN FRANCISCO, June 8 (Reuters) - Dell Inc. DELL.O said on Friday it would sell notebook computers at more than 580 of Wal-Mart Stores Inc.’s (WMT.N) Sam’s Club outlets for $899 each starting next week, its latest move to sell computers in retail chains.

Dell said last month it would start selling desktop computers for less than $700 apiece in more than 3,000 Wal-Mart stores in North America, breaking from its 23-year-old direct-to-consumer sales model as it tries to rekindle growth.

Friday’s announcement extends Dell’s retail push to consumer notebook computers, which are typically more expensive and more profitable than low-end desktops. Round Rock, Texas-based Dell is the world’s second-largest PC maker by unit shipments, after Hewlett-Packard Co. (HPQ.N).

The Dell Inspiron 1501 notebooks sold at Sam’s Club will have dual-core processors from Advanced Micro Devices Inc. AMD.N, two gigabytes of memory and 120-gigabyte hard-disk drives, Dell spokesman David Frink said. They will feature Microsoft Corp.’s (MSFT.O) Vista Home Premium operating system.

Dell also will start selling notebooks at an unspecified number of Wal-Mart stores later in the summer, Dell spokesman Bob Kaufman said. Kaufman said he did not have details on which models would be offered.

Shares of Dell rose 37 cents, or 1.4 percent, to $27.36 in late trading on Nasdaq after earlier dipping as low as $26.74.

Wal-Mart said separately it will begin selling Dell E521 Dimension desktops with 19-inch flat-panel displays on June 10 for $698 each at all its U.S. stores. It also will offer the same computer without the display for $498 at 3,000 stores.

Wal-Mart, the world’s largest retailer, and Dell announced last month the sale of the desktops, which will have a gigabyte of memory and Windows Vista Home Premium operating systems.

((Editing by Braden Reddall; Telephone: +1 415 677-2547, E-mail: philipp.gollner@reuters.com)) Keywords: DELL RETAIL/

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