<<but don't you think domestic computers or even those from Taiwan will beat Dell in price?>>
I think I said in another post today, perhaps not on this thread, that Dell will have a tough time to get much profit in China's market in near future. The reason: for governmental agencies, Dell is too late for the game, although it does not mean it cannot get market share, but not much. For individual consumers, price is the key issue (I think the same thing here). Some big Chinese computer firms (Legend, for example), which make much cheaper and also good quality computers, already become very successful and get the highest market share. CPQ and IBM who are much earlier in the game than DELL just do ok in China. So what makes Dell so special?
Not to mention other factors, like telephones and Internet are still far from universal/popular in China's big cities, let alone smaller cities. I don't remember the statistics, but I think at most is between 20-30 percent of the population have phone at home. Internet access has even much lower rate because the high access charge. |
