Dell sets TV sights on Japan

Dell announced yesterday that the company intends to enter the flat-panel television market in Japan. The successful direct sales model will be used in Japan, the same method that Dell uses in the United States. Expectations are that Dell will offer 30-inch LCDs and 42-inch plasma sets.

Are you wondering if Dell can compete in the Asian market, where so many consumer electronics companies are based? Oh, they'll compete alright, and more then likely they will be very successful. They have a proven business model with their on-line and phone sales. You could argue that perhaps Japan isn't ready for that type of business approach; time will tell.

The more important reason Dell will be successful: price. Dell's 42-inch plasma costs about $2,700 here in the U.S., or roughly 300,000 yen. Similar sets made in Japan retail for 400,000 to 500,000 yen. The cost difference alone will cause a retail tsunami.