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Dell to Sell Sony Televisions to Boost Consumer Sales (Update1)

By Connie Guglielmo

Feb. 7 (Bloomberg) -- Dell Inc., the world's second-largest personal-computer maker, said it will offer televisions from Sony Corp. in a bid to lift its sales to consumers.

The company, which began selling its own branded TVs in 2003, will continue to offer those TVs, Bob Pearson, a spokesman for Round Rock, Texas-based Dell said in an e-mailed statement. Dell will add products from other makers over time, he said.

Dell started selling TVs to help diversify beyond PCs, which account for more than half its revenue. Adding Sony's models may help Dell win back consumers who defected to rival Hewlett- Packard Co. because of Dell's poor PC customer service. Hewlett- Packard also offers TVs, which it sells with help from partners such as Best Buy Co., the biggest U.S. electronics retailer.

Dell may lure shoppers by offering better prices on Sony TVs than other retailers, said Rob Enderle, an analyst with the Enderle Group in San Jose, California. ``They have to build online store traffic, and the deal with Sony allows them to act more like an online retailer offering aggressive pricing,'' he said.

Dell is selling Sony TVs with 40-inch to 46-inch liquid- crystal displays through its Web site. The company will continue to sell Dell-branded TVs with 37-inch and smaller screens, Pearson said. A wide assortment of TVs from other makers will be sold through Dell.com soon, he said, declining to be specific.

``This decision is consistent with our plan of action to focus investments on areas of the consumer business where we can provide the most value and have the highest return for our shareholders,'' Pearson said.

Shares of Dell rose 17 cents to $23.82 at 4 p.m. New York time in Nasdaq Stock Market trading. They fell 16 percent last year.

To contact the reporter on this story: Connie Guglielmo in San Francisco at cguglielmo1@bloomberg.net

Last Updated: February 7, 2007 17:43 EST

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