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China 'engine' for Dell

By Wang Xing (China Daily)
Updated: 2008-10-24 10:06

Computer maker Dell Inc said it would continue its rapid growth in China in the years to come despite growing uncertainty due to the global economic crisis.

Michael Dell, CEO and chairman of Dell Inc, said emerging markets, especially China, will continue to act as the most important engine for Dell's global business.

"IT spending in China is still at the very early state of evolution," he said. "You have vast parts of China that have not taken advantage of IT tools, huge numbers of people coming online and great opportunities to increase productivity and modernize infrastructure."

He said Dell will outpace the average industry growth this year and increase its investments in emerging markets, noting that economic growth in several Asian countries could overcome the impact of the global economic crisis in the region.

Dell posted 33 percent sales growth in China in the second quarter of this year. The surge was believed to have mostly come from the new partnerships it made with eight major retailers in China as well as about 2,500 new retail outlets, which have significantly boosted the company's coverage outside China's big cities.

The company said it wants to expand the number of its small business sales centers in China from the current 155 to 1,500 by the middle of next year.

Although the firm is enjoying rapid growth in China, Dell also warned that surging manufacturing costs would push production away from China's coastal regions.