To overcome slowing PC growth, Dell has been expanding into services, storage, and products that are closely related to PCs such as switches and projectors. The company has begun expanding its service offerings, which now make up about 10 percent of revenue, with new offerings for both businesses and consumers. It has also been entering new product categories, including network switches and, more recently, projectors. And the company is evaluating other categories, including printers and, some sources say, handheld devices. Dell launched an in-home PC installation service for its US consumers earlier this month. Earlier this week, it launched the 3100MP digital light projector. The machine, aimed at small and large businesses, sells for significantly less than competing products. Dell uses lower prices as a strategy to quickly gain market share in a new market. The company has also been looking closely at the printer market, which it could enter by partnering with a third party such as Lexmark. The company currently resells Lexmark and HP printers but has hinted it may become more involved in marketing these products. But Gray warns that it could take some time to see a real impact on Dell's bottom line from these new markets. "I think (Dell) will still excel over the competition in the PC market," Gray said. "But to get to a point where these (extras) will have significant impact will take awhile."
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