Dell cuts the price of Dell Adamo: Will this hurt Apple’s MacBook Air?

On July 22, 2009, Dell anounced to drop the price of its thin Adamo laptop by $500. Earlier, the 13.4 inch aluminum laptop with 1.2GHz Core 2 Duo processor and 128GB solid-state drive would cost $1999 which is now priced at $1499. The high-end variation with 1.4GHz processor, 2 GB RAM, and mobile broadband connectivity has been reduced $400 to $2,299. Buyers can chose between pearl and onyx.

This price cut comes after Apple cut the price of its MacBook series laptops in June 2009. The price of 13" unibody MacBook has been reduced to $1200 from $1300. The 15" MacBook Pro to $1700 from $2000, the 17" MacBook Pro to $2500 from $2800 and MacBook Air to $1500 from $1800.

Apple is known for producing high-end products that provide better quality. However, in recent times, sales of low priced netbooks and laptops grew significantly as the the economic recession badly hit American consumers. This price cut is a good move on Apple’s part. Apple started a new trend in the laptop industry by launching MacBook Air the thinnest laptop in the world. However, Dell followed Apple and released Dell Adamo. Now the million dollar question is- Will Dell's price cut hurt MacBook's business?