Coming soon to Wal-Mart: Dell PCs

NEW YORK -- In a departure from the direct-to-consumer business model it was founded on, Dell Inc. plans to sell computers at Wal-Mart Stores Inc., the world's largest retailer.

The computer maker will begin selling two models from its Dimension desktop computer line in about 3,000 Wal-Marts beginning June 10.

Dell spokesman Dwayne Cox said the Wal-Mart deal "represents our first step" into global retail.

"Customers want more and new ways to buy our products, and we plan on meeting their needs on a global level," Cox said.

Cox said Dell will detail additional moves into retail in the coming quarters, but he declined to give specifics.

The two Dimension E521 models will be sold at Wal-Marts in the United States, Canada, and Puerto Rico. Dell said it could not reveal specific prices yet. On its website, the cheapest Dimension E521 costs $359.

Since its founding in the 1980s, Dell has relied on selling PCs and other products directly to consumers and business customers over the phone and Internet. It viewed direct sales as an important cost advantage.

The strategy worked, helping Dell become the world's leading PC maker. But last year, the Round Rock, Texas, company lost its lead to a revitalized Hewlett-Packard Co., which now sells systems online, by phone, and in stores.

Dell's disappointing financial results led to the ouster of chief executive Kevin Rollins in January. He was replaced by founder Michael Dell, who in the 1980s laid down the company's core model of building computers as customers ordered them, holding only a few day's worth of components in inventory.

Morningstar analyst Rick Hanna said Michael Dell was "the right person" to adjust the company's strategy.

Separately, Dell was set yesterday to start selling consumer PCs running Linux, a free operating system that competes with Microsoft Corp.'s Windows.