Dell still on slow road to China

Posted on Tuesday, October 08 2002 @ 10:35 CEST by Thomas De Maesschalck
Again some China news , this time not about AMD but about Dell :
In a bid to boost its presence in a country that's poised to overtake Japan as the world's second-largest PC market, Dell began selling its state-of-the-art 4500S Dimension model last month through its Web site for the relatively low price of $966 (7,998 yuan) as it tries to lure Chinese buyers from Legend.

Dell, which ranks second only to Hewlett-Packard in global PC sales, controls less than 1 percent of China's consumer PC market, compared with Legend's market-topping 28 percent, said Kitty Fok, an analyst at IDC.

"That's why it makes sense for Dell to (offer competitive prices) because they want to penetrate this market," Fok said. "Although Dell is a small player (in China), they have a significant impact."

Dell is a formidable opponent, but its low-cost direct sales model--in which consumers order computers online and by phone instead of in traditional stores--puts it at a disadvantage when it comes to customer support in China.

Typically, Fok said, consumer knowledge of PCs is lower so they need more assistance.
More info @ Cnet

About the Author

Thomas De Maesschalck

Thomas has been messing with computer since early childhood and firmly believes the Internet is the best thing since sliced bread. Enjoys playing with new tech, is fascinated by science, and passionate about financial markets. When not behind a computer, he can be found with running shoes on or lifting heavy weights in the weight room.

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