Dell U-turns on offering only Vista PCs

Amid significant customer demand, Dell will return to offering Windows XP as an option on some of its consumer PCs.

Like most computer makers, Dell switched nearly entirely to Windows Vista-based systems following Microsoft's mainstream launch of the operating system in January. However, the company said its customers have been asking for XP as part of its IdeaStorm project, which asks customers to help the company come up with product ideas.

Dell said on its Ideas in Action page: "We heard you loud and clear on bringing the Windows XP option back to our Dell consumer PC offerings." Users get to vote on various suggestions, and the notion of bringing back XP got 10,000 "points", making it among the most popular requests but well below top picks such as adding Linux or OpenOffice.org to its PCs.

Windows XP systems became scarce but not impossible to find after Vista arrived. For example, HP said it would continue selling XP on some machines aimed at SMEs, while CompUSA still stocks a couple of business-oriented XP systems in its retail stores. Lenovo has also continued shipping XP on many of its business systems.

Starting immediately, Dell said, it is adding XP Home and Professional as options on four Inspiron laptop models and two Dimension desktops.

Earlier this month, Dell added XP back as an option for small-business customers but at the time it said it would not add it back for home users.

Tom West, director of small-business marketing at Dell, said in a blog posting at the time: "Dell does not have plans to launch Windows XP for home users as the preference, and demand is for the 'latest and greatest' technology, which includes Windows Vista."

Analysts say Dell's move is not a good sign for Vista.

IDC analyst Richard Shim said: "That there is remaining demand from some segment of the consumer market points to the inability of Vista to resonate with consumers."

Current Analysis research director Samir Bhavnani said most of the demand for XP he sees is from small businesses, rather than consumers: "They know that XP works. It's not that they don't want to upgrade to Vista. They just don't want to upgrade to Vista yet."

Microsoft product manager Michael Burk said in a statement: "Dell is responding appropriately to a small minority of customers that had this specific request. But, as they have said before, the vast majority of consumers want the latest and greatest technology, and that includes Windows Vista."

The software maker has said it will stop selling Windows XP to large PC makers by January. Smaller computer sellers, known as system builders, will be able to sell XP machines for an additional year.

In a statement last week, Microsoft said such a move is normal after a new operating system comes out.

It said: "Windows Vista is safer, easier to use, better connected and more entertaining than any operating system we've ever released, and we're encouraged by the positive customer response we've seen to date. It's standard practice to allow OEMs, retailers and system builders to continue offering the previous version of Windows for a certain period of time after a new version is released."

Ina Fried writes for CNET News.com