Dell Vs. WalMart

This is going to be good. Dell and WalMart will probably end up competing to see who can manufacture computers at a lower cost.

The retail giant plans to begin offering notebooks under its own brand name during the first quarter of 2004, a report in the Taiwan Economic News said this week, quoting industry sources.

A source familiar with the notebook industry in the United States told CNET that Wal-Mart has shown interest in offering a notebook line in the future, but has not yet reached a deal with a specific manufacturer.

If Wal-Mart, which sells PCs from companies such as Hewlett-Packard and eMachines, moves into the notebook market successfully, it could send ripples across the PC industry. The retailer's typically aggressive pricing could compel manufacturers such as Dell, HP and Toshiba to lower their notebook prices in response, analysts said.

This might surprise some people, but my money is on Dell. WalMart and quality don't exactly go together, and I'm not sure WalMart's target demographic spends that much time on computers. WalMart doesn't lose very often, so this could be a fun battle to watch.