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Strategies & Market Trends : Value Investing

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To: pcyhuang who wrote (24623)8/18/2006 7:50:46 AM
From: Madharry  Read Replies (2) of 78748
 
RE: DELL

The company's revenue grew just 2 percent in Japan, a key market. But sales jumped 31 percent in China and 63 percent in India.

Dell's chairman declined to provide any outlook for the current quarter.

"I think we (Dell as a whole) got a little too aggressive in pricing strategy. But in Asia we did see good elasticity," Dell's regional head Steve Felice told reporters in a conference call. "In Asia, we saw very solid profitability."

Asia, which accounts for 14 percent of Dell's revenue, has been a bright spot for the company.

"We will continue to provide competitive pricing," Felice said when asked if Dell would lower prices in Asia still further for market share.

Felice said the company's plan to launch Dimension consumer desktop PCs with Advanced Micro Devices Inc. (NYSE:AMD - News) microprocessors could have a "profound impact" on growth in China.

"Customers asked us to expand the product line to include AMD, and the Dimension line has a lot of appeal in China. We've had good growth in China so far and this will help us accelerate that," he said.

In Japan, Dell sold 14.5 percent more PCs in the April-June quarter than a year earlier on aggressive pricing, nudging out Fujitsu Ltd. (Tokyo:6702.T - News) to become the second-largest PC supplier in Japan after NEC Corp. (Tokyo:6701.T - News) in the quarter, according to research firm IDC.

Dell's unit shipments in India surged 82 percent in the quarter, giving it a market share of about 7 percent. Growth in India is "phenomenal," Felice said, saying he expected high double-digit percentage growth for India in both revenue and unit terms.

GS announces SELL rating. Better late than never? or more signs that the stock has bottomed?
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