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Dell takes a page from Apple in Adobe deal


Dell XPS 420
Dell's XPS 420. Image: Dell

Following Apple's (AAPL) lead, Dell (DELL) is outfitting a new upscale PC with sophisticated software for making videos, managing photos and tweaking audio.

The company announced Tuesday that its new XPS computers will come pre-loaded with versions of Adobe Systems' (ADBE) Photoshop, Premiere and Soundbooth software. It's the first time Dell has offered that kind of a software bundle, and the first time Adobe, a recognized leader in creative software, has packaged the three programs together in a suite called Elements Studio.

Adobe said the Dell package is not exclusive.

Karen Plotkin, Dell's director of consumer desktop marketing, said Dell made the move because customers say they want it. "We're looking at the customer who wants to get started easily," she said.

That's a market Apple has had in its sights for quite a while. Its iLife multimedia programs have helped the company's computer business outpace rivals, with global shipments growing more than 15 percent in the third quarter compared to the year before.

A financial edge from edgy PC design (Photos 1-7)

Initially, the Adobe bundle on the Dell XPS 420 Multimedia PC will be out of reach for most shoppers. The PC will start at $1,499 at a time when great desktops can be found for half the price. But Dell said that the software will be available on lower-cost computers in the future. The XPS 420 comes with multi-core Intel (INTC) processors, and a choice of ATI (AMD) and Nvidia (NVDA) graphics cards. It runs Microsoft (MSFT) Windows Vista.

XPS 420
An LCD on top of the XPS 420 tower takes advantage of Windows Vista's Sideshow feature. Image: Dell

The Dell PC will also come with software that speeds the process of preparing video for upload to social networking sites or transfer to portable media players. Dell says its Xcelerator system preps video 25 percent faster than usual, and allows people to keep using their PCs while it works in the background.

Though the software move echoes Apple, Dell's strategy with the XPS may help it compete with Hewlett-Packard (HPQ), which recently took the number-one spot in global PC shipments, a position long occupied by Dell. HP has lately focused on improving the design of its PCs and adding multimedia options as a way to lure mid-range and high-end consumers.

A computer is a computer is a computer.

Posted By Yadgyu, Harkeyville, TX: November 1, 2007 6:54 PM

I live in both worlds…but sometimes you Apple fanboys are too much.

Comparing Apple's prices with Dell's…shame on you.

All ya'll know it's about the software more than the machine. You can't even get a real graphics machine from Apple without getting a macpro…starting at 2400 with the 667 mem.

At Dell for 1800 I can build a machine with 4 gig of 800 mem same front side bus 500gig harddrive etc…I could go on but no point.

In fact I have a systems max for the 1800 price that does the Adobe suite as well as any mac I've seen for under 4 grand…it does Lightwave great.

Ipod Iphone…Apple has it going on…but pricing on their pc machines is a marketing game keeps production numbers down but they squeeze every penny per purchase on rep alone…not unlike BMW…ever looked at market value on a 7 series…only for the rich and the education types who get our tax dollars to pay for thiers. It used to be there was a real diff between a Mac and a Wintel…not any more.

Posted By kevin, Oklahoma City, OK: October 26, 2007 2:56 PM

Dell or Apple products? This is a joke, right? Ford or Bugatti – same thing.

Posted By Jim, Baltimore , MD: October 24, 2007 7:37 PM

what's wrong Jon – you don't think it looks like a coffee maker? You must be frickin' blind from the MicroShaft Crap Beam…

Posted By Jack again, NYC, NY: October 24, 2007 7:34 PM

Adobe products are nothing like the iLife suite on an Apple (there are more offerings and they are easier to use) and you can buy a new Mac for as low as $599! (versus the Dell for $1499!) Dell should just close up and give the money back to their stockholders… they are stuck with MicroSoft Vista… its only a matter of time.

Posted By Thomas, Blauvelt NY: October 24, 2007 7:31 PM

I explored the pain Dell's going through in re-positioning its brand as the 'new anti-Apple' by emulating it:

Dell: “Apple has become the conformist company”

http://counternotions.com/2007/09/27/dell-apple-has-become-the-conformist-company/

Posted By Kontra: October 24, 2007 7:30 PM

It resembles a kitchen appliance – maybe a coffee machine… do I have to buy MicroSoft coffee filters for it?

Posted By Jack, NYC, NY: October 24, 2007 7:24 PM
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Jon fortt

Jon Fortt
A senior writer for Fortune, Jon Fortt focuses on technology and innovation in Silicon Valley – a subject he's been reporting on since his days as a rookie reporter for the Lexington (Ky.) Herald-Leader. Before joining Fortune in 2007, Jon had reporting and editing stints at Business 2.0 magazine, and the San Jose (Calif.) Mercury News, Silicon Valley's hometown newspaper.
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