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Technology Stocks : Dell Technologies Inc. -- Ignore unavailable to you. Want to Upgrade?

To: kemble s. matter who wrote (175083)	8/4/2005 9:57:08 AM
From: William F. Wager, Jr.	Read Replies (1) \| Respond to of 176387

Kemble, Hi...Dell CEO Rollins Sees Sustained Growth In China Business DOW JONES NEWSWIRES August 4, 2005 5:19 a.m. HONG KONG -- The world's largest personal computer maker, Dell Inc. (DELL), expects its business in China to continue to grow and for the country to become one of its biggest markets worldwide, Chief Executive Kevin Rollins said Thursday. "We are comfortable that our profitability in China can be sustained and that's a great business for us," Rollins told reporters at a briefing. Since entering China in 1998, Dell has become the country's third-largest seller of PCs, behind two Chinese rivals, with an 8% market share. Lenovo Group Ltd. (0992.HK) is No. 1 in China, with a market share of around 30%. Rollins said Dell will keep its focus on corporate and government clients in China, ahead of retail customers. The company has used this strategy elsewhere, including the U.S. and Japan. "With just 9-10% market share in China, we still have an awful lot of room to grow without looking into any unique, new thing," Rollins said. Comparing China with India, another rapidly growing emerging market economy, Rollins said China has more potential in the short term. Dell ships about US$12 billion worth of components out of China a year, and the country generates annual revenue of around US$1.5 billion to US$2 billion for Dell. It employs 6,000 people in China. Though Dell employs more people in India, about 10,000, its main operations there are call centers that give technical support to customers in English-speaking countries. Rollins said Dell continues to win market share from International Business Machines Corp. (IBM), whose PC operations were bought over by Lenovo this year to give the Chinese PC giant an 8% share of the global market. He said Dell has won new customers from IBM around the world since the Lenovo deal, but declined to identify them, citing confidentiality agreements. These new customers included some in China, said Rollins. "Lenovo isn't as well-known and Dell is very well-known so the opportunity for us to capture (IBM's) market occurred." Dell is the world's most profitable and largest PC maker in terms of unit sales, with about 19% market share worldwide. Its annual revenue for the fiscal year ended Jan. 28 was US$49.2 billion, while its net profit for the period was US$3.04 billion. -By Julie Wang, Dow Jones Newswires; (852) 2802-7002; julie.wang@dowjones.com -Edited by David Riordan