<Dell Watch,Asia Watch>Dell's China Sales Forecast-Signs of Asian sales rebound.
Well Ian in case you haven't heard the news here it is again (Lockeon already posted Dell's China Forecast),clear signs of 'kick-ass' recovery in Asia and Dell smoking in China,need I say more.<g>
'You ain't seen nothin' yet' as I always say.
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(Courtesy:The Millinneum Group/chinaMatrix/OnlineReporter/Dow Joes/WSJ)
3/5/99
DELL's Chia Sakes Forecast
HONG KONG - Sales of Dell Computer Corp.'s (DELL) computers could reach $1 billion in China within three years, said John Legere, Dell's President for the Asia Pacific Region, in an interview with Dow Jones Newswires.
In the six months after it opened a new plant and applied its direct sales approach to China, sales have grown at a 50% monthly rate, Legere said. He added that Dell finished the year selling at an annual rate of more than $100 million.
"I expect to break the billion dollar mark in China within three years," he said. "We're ahead of plan." He added that the company was profitable in China in the fourth quarter of its fiscal year ended January 1999, and was able to keep its inventory levels tighter than expected.
The company began production in Xiamen, China in August, and now sells directly to corporate customers in 15 major cities and 80 smaller markets in the country. Dell had previously used dealers for its sales. The company also has production facilities in Penang, Malaysia.
The company is still a relatively small player in the Chinese market, with a 1.2% market share, ranking it eighth among domestic and foreign players. Legend Holdings Ltd. (H.LHD), the mainland-based computer company, leads the market. But Legere said there is plenty of room for the entire market to grow. "In 2 to 3 years, China will be the second biggest personal computer market in the world," he said.
In the fiscal year ended January 1999, Dell recorded global sales of $18.2 billion, compared with $7.8 billion in the previous year.
(source: Dow Jones Newswires)
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HP Sales See Asian Rebound
3/5/99
HONG KONG - Computer sales in Asia have shown a fast rebound, the head of Hewlett-Packard Co.'s (HWP) Asia operations told Dow Jones Newswires.
"There's been a general rebound across the board," said Dick Warmington, president of Hewlett-Packard Asia Pacific Ltd. "It hasn't been confined to any one country or one product category." He added that, "we see continuing improvement in the next few months. I'm quite optimistic."
Warmington said Hewlett-Packard, which last week announced it would spin off its measurement business into a separate company, had projected a drop in revenues in Asia for the current fiscal year, which began Nov. 1. Instead, "We're into positive growth so far in fiscal 1999," he said.
Hewlett-Packard's Asian revenues dropped 15% in fiscal 1998 from record levels the year before. Warmington said, "We hope to get back to those record levels in fiscal 2000." Asian operations account for 13% of Hewlett-Packard's total revenue.
The rebound has been substantial enough for Hewlett-Packard to start hiring again for its Asian operations, ending a virtual hiring freeze in effect last year, he said.
Warmington attributed the turnaround to the fact that Asian companies are recognizing that, despite the economic downturn, they have to begin investing again in information technology to compete. "There are some possible bumps in the road, but I think the world has dealt with the reality of what's going on here," he stated. "Money is coming back into Asia."
Foremost among the potential bumps, Warmington pointed to the prospect of U.S. Congressional action to tighten licensing requirements for the export of high-technology equipment to China. Because of the recent controversy over whether the export of American technology helped China develop missiles, the Hewlett-Packard executive said, "The signs now don't look good."
(source: Wall Street Journal)
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