To: Calvin who wrote (143017 ) 9/28/1999 7:15:00 AM From: TechMkt Respond to of 176387
More on China. Fez ________________________ Tuesday September 28, 2:06 am Eastern TimeDell CEO sees ahead-of-schedule China profits SHANGHAI, Sept 28 (Reuters) - Dell Computer Corp (NasdaqNM:DELL - news) has achieved an elusive goal in the potentially huge but often disappointing China market -- profits ahead of schedule, Chairman Michael Dell said on Tuesday. ``Our business this year in China is going to be several hundred million dollars in revenue and has achieved profitability ahead of schedule,' Dell told a news conference. The Texas-based PC maker's success since it launched direct sales in China in August 1998 shows ``quite decisively that the direct model works extremely well in China,' he said. Dell said sales in China were ``setting records' for the company, but he did not give specific figures. A company statement said second quarter sales in China this year rose a year-on-year 561 percent, lifting Dell to the seventh rank in China's top 10 PC vendors by shipments and putting China on the verge of breaking into its top 10 markets worldwide. ``Dell believes that the China market is going to be absolutely critical to its future,' Dell said. Dell has largely targeted Chinese firms and government agencies as well as multinationals in China in its direct-sale method, saving money by avoiding the reliance on resellers that is the industry norm, Dell said. Dell, which launched a manufacturing plant in the southeastern city of Xiamen last November, was ``in the early development stages of a second Xiamen location to support our growth,' he said. David Chan, Dell's China president, said the company started selling the same products to Chinese customers as elsewhere, but ``the timing is right now for us to look at Chinese products for the China market.' Chan cited Dell's collaborative tie-up with Sina.com as an example of the China-tailored products, saying it planned to pre-load the Chinese portal operator's Richwin software and perhaps its browser on future Dell PCs. Michael Dell, in Shanghai to attend the Fortune Global Forum of world executives, opened his firm's first application solution centre in Asia in the Chinese city on Tuesday. The centre will help customers tune and reconfigure software for Dell workstations and Intel Architectures, the firm said.