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To: kemble s. matter who wrote (143857)10/6/1999 5:43:00 AM
From: Mick Mørmøny  Respond to of 176387
 
Kimball, er, Coach Kemble: 1 Billion PCs

GREAT DELL OF CHINA

One year after entering the Chinese market, Dell Computer is making money there — according to an announcement by founder Michael Dell. In an interview last week with the Financial Times, Dell indicated company sales of several hundred million dollars. He added that sales growth in China had set a record for Dell Computer.

About 60 percent of the company's sales are to the government or to government-related enterprises, which, considering that some of Dell's mainland competitors have government and/or military pedigrees, makes the achievement all the more impressive. Dell's success also goes a long way toward proving that the direct sales model works in China. Indeed, I've noted for the past few years that the direct model may be the only way to avoid artificial market barriers put up by leaders in Asian economies.

Given the dismal performance of many other companies investing in the PRC, I expect the push toward the direct model will be greater, to the degree that they are interested in the Chinese, and ASEAN, market.

abcnews.go.com