Dell Technologies (DELL, Financial) has announced a rebranding strategy for its personal computer (PC) lineup, aiming to replicate Apple's (AAPL) naming convention to enhance consumer demand. The company plans to drop long-standing names such as "XPS" and "Inspiron" in favor of a streamlined naming system centered around the Dell brand. This initiative was unveiled ahead of the global Consumer Electronics Show (CES).
Jeff Clarke, Dell's Chief Operating Officer, emphasized that customers prefer names that are easy to remember and pronounce, eliminating the confusion of the previous naming system. Following a surge in PC purchases during the early pandemic, sales have since stagnated, prompting both Dell and competitor HP (HPQ) to innovate strategies encouraging product upgrades.
Artificial intelligence-optimized systems and Microsoft's discontinuation of Windows 10 support are seen as driving forces for upgrades. Dell's new PC models will now be categorized into three tiers: Dell, Dell Pro, and Dell Pro Max, mirroring Apple's device nomenclature for differentiating premium models. Clarke defended this strategy by stating that terms like "pro" or "max" are not exclusive to any brand.
Dell's gaming-focused PC brand, Alienware, acquired in 2006, will remain unaffected by this rebranding. Kevin Terwilliger, Dell's PC business Vice President, noted that many new devices will integrate neural processing units optimized for AI tasks. CEO Michael Dell (Trades, Portfolio) highlighted the need to replace aging PCs with AI innovations, predicting a growing demand for upgrades. Dell shares rose 3.96% to $124.66.
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