DELL is doing GREAT in China, a market where they said THE DIRECT MODEL CAN'T WORK.
Fez
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Dell, Chinese Sales Up, Will Move Plant to Permanent Location
Shanghai, Sept. 27 (Bloomberg) -- Dell Computer Corp., the world's largest direct seller of computers, said it plans to move its mainland China factory to a permanent location because sales in the world's most populous country have soared.
Dell's personal computer factory in Xiamen, a city in southeastern Fujian province, which opened in August 1998, helped boost sales nearly six-fold in the April to June 1999 quarter compared with the same period last year, said Michael Dell, the company's chief executive and chairman. He didn't give a dollar amount.
``We're doing great,' Dell said. ``Selling direct we should have several hundred million dollars in revenue this year.'
Dell's apparent success in China vindicates its direct-sales business model, which some critics said relied too heavily on credit card payments and shipping for a developing country such as China.
While Dell is increasing its investment in Xiamen, adding 50 new employees a month, it isn't planning to set up manufacturing centers in other parts of the country.
``We don't see a niche for multiple facilities in multiple parts of China,' Dell said. At present, the company can offer next-day computer delivery to 800 cities in China, he said.
Dell Stock rose 19 percent so far this year, compared with a 3.9 percent rise in the benchmark Standard & Poor's 500 Index. Last week, Dell stock fell 11 percent to 5 3/16.
Sep/27/1999 4:40 |
