dell

For almost a decade, Dell (DELL) has devoted considerable resources to
building its China business while trying to convince
skeptical Chinese computer users of the beauty of its direct-sales
model. Last year, for instance, it doubled its Chinese
manufacturing capacity by adding a second factory in the southeastern
city of Xiamen. One exports to other Asian markets and
the other is meeting demand inside China. In March, CEO Michael Dell
traveled to Shanghai to unveil a new low-priced
desktop PC designed by Dell's Chinese engineers specifically for
domestic customers. Over the past year, the company has
also opened nine kiosks in Chinese shopping centers to make it easier
for the nation's consumers to order PCs from Dell on
the spot. 

Still, the Chinese have not exactly embraced Dell Direct as a way of
buying PCs. Dell's market share among domestic
consumers is tiny, just 2.5%. It does much better among big corporate
buyers, but it's overall market position is below 10%
and it ranks No. 4, behind market leader Lenovo as well as the
second-largest Chinese company, Founder. Perhaps even
more irksome to Dell executives, the company can't even brag that it's
the top foreign brand, since Dell has fallen behind
resurgent Hewlett-Packard (HPQ) in the People's Republic. 











































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Received on Monday, 24 September 2007 16:39:45 UTC