Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: SecularBull who wrote (103738)	2/22/1999 12:50:00 PM
From: Mohan Marette	Read Replies (1) \| Respond to of 176387

Dell & China's IT Market-The year in perspective LoD: Interesting perspective,notice Dell figure prominently in the article as it is obviously viewed as a watershed event in China's IT industry, how very interesting indeed. ========================= (Source:ComputerWorld,SAR via ChinaMatrix) Posted: 9:54am Tuesday, January 5, 1999 China's IT market -- the year in perspective By New Century Group staff According to New Century Group estimates, China's IT market (hardware, software and services combined) is expected to have recorded growth of 31 percent in 1998. Looking back, we see several events worth noting. These include the formation of the Ministry of Information Industry in March; Dell Computer's partial implementation of its direct sales model in August; the continued ascent of the Internet; and local Y2K problems. In 1998, application software sales constituted one of the most dynamic parts of China's IT market. Some sectors of this market will see extraordinary growth from a small base. Others, while still growing fast, will begin to slow to more manageable rates. Another area of strong growth is the services market. However, users still need to be educated on the value of services as a separate cost of doing business. Growing competitive pressure resulting from deregulation, especially in the finance and telecommunications sectors, is a key factor driving users to adopt IT services. The creation of the Ministry of Information Industry (MII) was a watershed event for China's high-tech industries. It has created a dramatically different competitive and regulatory environment. More than simply integrating two ministries in conflict over control of networks, the MII represents recognition of technological convergence and the desire to exercise closer control over activity within the market. However, the main goal of separating regulatory and commercial activities has, for the most part, not made much progress so far. There will continue to be the not-so-hidden hand of government protecting nascent IT and telecom manufacturing industries. From the viewpoint of foreign PC vendors in China, the big story of the year was Dell's partial implementation of its much-vaunted sales model. While direct sales are at the heart of Dell, it retains between 70 and100 resellers scattered across China. Ironically, many of these resellers are based in cities where Dell has, or plans to have, an office. Since the company does not allow indirect channel activity in these locations, the number of resellers has started to dwindle. How well direct sales efforts work in China is something to watch out for in 1999. If Dell succeeds, others will follow. Another defining event for the 1998 IT market in China was the Internet. In charting the last 12 months of the Internet's progress in China, the best point of reference was surpassing the million-subscriber mark. But perhaps the most far-reaching change that occurred in 1998 was that most senior managers within China's largest companies became increasingly aware that they need a much firmer grasp of market-driven economics. Management expertise and customer-driven processes are alien concepts to central planners. China's business leaders are aware that they need to learn fast. The economic crisis has galvanized this prevailing attitude and IT is seen as an important component of future growth. We predict continued strong growth in China's IT market through 2003.