If you don't plan on modifying your system, that is a good deal. Although, you can probably build one with the same specifications for $900 - $1000 (including tax), it is not worth the hassle if you don't already known much about computers. For example, I spent over 20 hours to research and build my first computer (I took the longest reading plenty of reviews before buying any one component, and finding the cheapest good components since I wanted to save money).
So it's really not worth it unless you enjoy building computers. Anyhow, Dell only has a bad reputation for their uncustomizable computer parts. For example, the I/O panel is built into their chassis for their inspiron models. So you would need a new motherboard if you decide to upgrade w/ something that will generate more heat because the inspiron chassis is too small to accomodate a lot of heat. I have no idea how the XPS models are built though.
Dell, on the other hand, has excellent customer service, and you get a warranty from them if you buy from them. If you ever have issues with your computer, you can just call them, and they'll quickly dispatch a technician to come to your house to fix it.
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