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  •   Dell Considers Custom-Designed PCs

       
    By David E. Kalish
    Associated Press
    Tuesday, June 16, 1998; Page C02

    NEW YORK, June 15—Dell Computer Corp. says it is talking to Microsoft Corp. about custom-designing the personal computers it sells, the latest bid by manufacturers to try to gain more control over how PCs look and operate.

    The talks by the nation's second-largest PC maker comes after rivals Gateway Inc. and Packard Bell-NEC Inc. recently touted more custom-tailored PCs.

    In an interview today in Manhattan, Dell chief executive Michael Dell said his company initiated talks with Microsoft, the maker of Windows operating-system software, because consumers could benefit from machines more closely tailored to their computing needs.

    While the Justice Department presses its antitrust case against Microsoft, computer makers are seeking on their own to try to break the Windows mold and differentiate their wares from rivals at a crucial time. Most personal computers look and operate pretty much the same, giving PC makers little to compete on other than price.

    "We see opportunities to enhance the user experience," Dell said. He said the company is seeking to customize the way computers look and interact with users "and we will take our own initiative to do so."

    Dell declined to give details on what type of changes his company is seeking, saying: "We like to engage in conversations with our vendors in more of a private manner."

    Last month Gateway, the nation's fourth-largest PC maker, said it won an agreement from Microsoft to customize the screen people see when they turn on their PCs. Gateway said it would promote its own Internet access service on desktop screens and make it easier for users to choose an Internet browser other than Microsoft's.

    Last week, Packard Bell-NEC, another large maker, said it would sell computers with icons located outside the Windows desktop screen that link users to Internet sites, including online stores.

    A Microsoft spokesman declined to comment on its talks with PC companies. But the spokesman, Jim Cullinan, reiterated the company's position that it does not restrict the ability of computer makers to customize PCs.

    Still, Microsoft's allegedly restrictive contracts with PC makers are a main focus in the government's antitrust case against Microsoft. Microsoft is accused of making it difficult for the computer makers to promote features and programs from Microsoft rivals, including Netscape's browser for viewing and retrieving information on the Internet.

    Netscape Communications Corp., which pioneered the market for Internet browsers, has seen its market share slide because of Microsoft's aggressive practices.

    Microsoft is vigorously defending its practices. It contends its strategy of continually adding new features to its operating system has reduced the cost of computing, giving consumers access to a wide array of free programs they otherwise would have had to buy.

    Its critics say the free software makes it harder for smaller rivals to survive and stifles innovation.

    © Copyright 1998 The Washington Post Company

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