Dell: PCs still rule the roost

The PC still rules, insists Dell Computer founder Michael Dell. He asserted the primacy of the PC as a digital media hub during his talk yesterday at the Consumer Electronics Show in Las Vegas.

He was politely refuting remarks made earlier in the day by Sony president Kunitake Ando, who insisted that smarter, more versatile television sets are about to rule the home.

Dell said: "Whether the TV or the PC is the centre of the universe is an interesting debate but I don't think it's that relevant. I would stick by my belief that the PC is becoming the centre of the entertainment experience."

CEO Dell used his talk, the first 'Industry Insider' speech at CES, to tout the company's profitable direct-sales, build-to-order business model. He also hinted at continued expansion for the PC maker, which recently began selling its own brand of handheld computers and soon will enter the printer market.

"We're seeing a networked lifestyle where more and more devices are able to talk," he said. "We find that in a lot of these markets, people are paying too much for these products, and the efficiency of Dell's business model can benefit them."

Dell said the company's recent holiday trial with retail kiosks, where potential customers can try out PCs and peripherals and place orders, were successful enough for it to continue them year-round.

"Some customers clearly want to touch and try out new products before they buy them, and this gives us a very flexible way to do that - we can put them up and take them down as necessary," he said. "It means the customers get the benefits of a retail environment with all the benefits of the direct model."

After his talk, Dell faced several pointed questions from the audience regarding the company's record on recycling obsolete PCs. Moderators quickly grabbed the microphone away from Ted Smith, director of the Silicon Valley Toxics Coalition, when he began detailing Dell's poor standing in the group's recently released Clean Computer Campaign report card.

Dell calmly responded that the company was expanding its already solid environmental efforts. "We're being fairly proactive in helping consumers recycle those items, donate them or auction them," he said.

David Becker writes for CNET News.com.