Global Economics

Dell Sees 'Clearer Path' to No. 1 in Asia


Asia-Pacific and Japan head Stephen Felice said growth in the region was led by India and China, with annual revenue gains of 52% and 30%, respectively

The PC maker is confident of its goal, based on its first quarter results announced Thursday in the United States, said Felice in a telephone briefing to media Friday. Dell reported total revenues of US$16 billion, an increase of 9 percent over the same period last year.

The company, he said, is pleased with the "truly outstanding performance in this part of the world" derived from the various product lines and customer segments.

Year-on-year, the APJ reported a 31-percent jump in unit shipments for Q1, compared to the 22 percent globally. Revenue-wise, APJ grew by 19 percent to US$2.02 billion.

Growth in the region was led by India and China, with year-on-year revenue increases of 52 percent and 30 percent, respectively. Product shipments in India, noted Felice, grew 10 times faster than the industry, while growth in notebook shipments to China was three times the industry average.

Dell, added Felice, has also enjoyed five quarters of sequential market share gains in the region.

"In the Asia-Pacific and Japan region, we're pretty open about our goal to become No. 1," he said. "Now, more than ever, I see a clearer path to that. We have confidence that our ambitions are real, and that we have a way to get there."

The ambitious moves that Dell has made in China earlier this year, such as expanding beyond tier one and two cities, are starting to pay off, Felice told ZDNet Asia.

Calling growth in China "stunning this quarter", Felice said Dell grew over two times faster than market leader Lenovo. The country, he added, will continue to play a significant part in Dell's overall growth.

Emerging markets, on a whole, also showed up strong in Dell's Q1 results. The BRIC (Brazil, Russia, India and China) segment recorded a year-on-year increase of 73 percent for unit shipments, and 58 percent for revenue, in the quarter.

In addition, the company reported that revenue from international markets exceeded that of the United States for the first time.

Felice noted that markets outside of the United States will continue to out-perform the domestic market, as growth outside of the United States is more significant and faster.

"It's very conceivable that two-thirds of the revenue [will come] from outside of the U.S. five years from now," he added.

At the D6 conference this week, Dell CEO Michael Dell said the company missed key industry trends such as consumer products and retail sales but has picked itself up again.

Provided by ZDNet Asia—Where Technology Means Business

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