To: calgal who wrote (139927 ) 8/19/1999 4:13:00 AM From: Lancer Read Replies (1) | Respond to of 176387
INTERVIEW - Internet sparks Dell's European surge By Neal Boudette, European Telecommunications Correspondent FRANKFURT, Aug 19 (Reuters) - Dell Computer Corp <DELL.O> said on Wednesday that the rise of the Internet in Europe was helping it gain market share in the region. "We are extremely optimistic and expect to grow (in Europe) at a strong multiple to the market," John Legere, president of Dell Europe, told Reuters in an interview. "It is our business model. Customers are migrating to the Internet purchasing method," he said. Late on Tuesday the world's largest direct marketer of personal computers said worldwide sales rose 42 percent to $6.1 billion in its second quarter, which ended on July 30. Earnings jumped 58 percent to 19 cents per share, beating the consensus estimate by two cents. In Europe, Dell's unit sales rose 39.9 percent, according to International Data Corp. That is more than twice as fast as the growth rate of 19.3 percent for the overall market in Europe. The ease of ordering PCs over the Internet is fuelling Dell's growth, Legere said. More than $5 million per day in European sales come via the Internet -- about 30 percent of its total. The Internet generates about 40 percent of the company's sales in the United States. Some 3,500 European business customers now have dedicated Dell "Premier Pages" set up in their computer systems allowing them to order PCs and other equipment directly from Dell. That is a 60 percent increase from the first quarter, Legere said. "Customers want us to sell a wider range of products through these pages because they like to buy this way," he said. Dell outpaced the market's growth rate in Europe's three largest countries. In Britain, its unit sales climbed 43.3 percent, enabling Dell to grab the market share lead from Compaq Computer Corp <CPQ.N>. According to IDC, Dell has 18.3 percent of the U.K. market, compared to 18.1 percent for Compaq. In France, year-on-year unit sales rose 87.4 percent, and in Germany Dell unit sales surged 101 percent. The company recently launched its DellNet Internet access service in those three countries. Legere said it was still too early to tell how many regular users it has. In contrast to Dell, Compaq has avoided selling over the Internet and has struggled in the last several quarters. Compaq, the world's largest PC maker, named a new chief executive as part of an effort to refocus the company on the Internet. ((Frankfurt Newsroom, +49 69 756525, frankfurt.newsroom@reuters.com)) REUTERS Rtr 01:49 08-19-99 Regards to All - Lancer