More on DELL's move to Singapore.
Fez
________________________
Dell's Asian headquarters headed to Singapore
By Bloomberg News
Special to CNET News.com
August 20, 1999, 6:30 a.m. PT
Dell Computer, the No. 1 direct seller of personal computers, said it's moving its Asia Pacific headquarters to Singapore from Hong Kong to tap into the Southeast Asian country's expanding Internet industry.
It's also shifting its "Web Farm," which handles its Internet orders for computers and helps companies set up Web sites, to Singapore from Tokyo, making the city state its e-commerce center. It expects government incentives as well as other cost savings with the move, but declined to give details.
Dell's decision is a boost for Singapore as it strives to become the first in the world to hook up every home and office with a high-speed Internet network.
"This is an area that the government wants to invest in, so they would be able to find ways to invest so that we can become part of their drive to become an Internet hub," said Morton Topfer, Dell's vice chairman.
The shift to island state will also put Dell closer to its customers. Its manufacturing centers in Asia are in Malaysia and China.
"When you're running a region that's going as far south as Australia, Singapore's a wonderful location for the region," he added. "Hong Kong was not the ultimate place to provide us the centricity."
Ambitions
Round Rock, Texas-based Dell has ambitious plans for the region. Sales in the area made up 7 percent of its $6.1 billion sales for the three months ended July, giving it 3.5 percent of the market.
It expects to at least triple that share in three years, raising its ranking to the No. 1 personal computer seller from No. 7 now. IBM, the No. 1 computer maker, has 9 percent of the market.
About 30 percent of Dell's computers in Asia are sold through the Internet. The company expects that to rise to half "in the near future." It wouldn't be more specific.
Dell also said it's forging a partnership with Singapore Telecommunications, the island's dominant phone company, to set up its Internet infrastructure.
Yesterday, Dell's shares surged 8.4 percent after it said fiscal second-quarter profit increased 47 percent and sales topped analysts' forecasts. The stock rose 3.44, or 8.4 percent, to 44.56. |
