Dell says to sell PCs at Asian retail chains

SINGAPORE Thu Jul 5, 2007 6:19am EDT

A file photo of Dell's XPS M2010 is displayed during a XPS product launch in Hollywood May 31, 2006. Dell Inc., the world's second-largest computer maker, said on Thursday it will soon start selling its laptops and desktops at Asian retail chains and stores. REUTERS/Fred Prouser

A file photo of Dell's XPS M2010 is displayed during a XPS product launch in Hollywood May 31, 2006. Dell Inc., the world's second-largest computer maker, said on Thursday it will soon start selling its laptops and desktops at Asian retail chains and stores.

Credit: Reuters/Fred Prouser

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SINGAPORE (Reuters) - Dell Inc., the world's second-largest computer maker, said on Thursday it will soon start selling its laptops and desktops at Asian retail chains and stores.

The company broke from its 23-year-old practice of direct sales to customers via the Internet or phone last month, and started selling low-priced PCs at Wal-Mart Stores Inc. in North America.

Paul-Henri Ferrand, who heads Dell's operations in the Asia Pacific, excluding Japan, China and South Korea, said the company was in talks with some retail chains and specialized stores across Asia but gave no names.

"Asia is a diverse region so the indirect (retail) approach in the region will come sooner in some countries and later in others," Ferrand told a media briefing at Dell's Asian headquarters in Singapore.

"What we want to make sure is that we customize our approach by country and target via these (retail) channels the customers that we want to go after," he said adding that different chains and stores would be used for selling low- and high-priced computers in different Asian countries.

Dell, based in Round Rock, Texas, lost the No.1 PC market share spot to Hewlett-Packard Co. as HP cut prices and boosted sales of consumer PCs.

About 85 percent of Dell's $57 billion of total revenue in the last financial year came from sales to large corporates and government enterprises, he said.

Ferrand said while Asia's revenue contribution to the company was at around 13 percent, growth in both sales and product shipment from the region was higher than industry averages.

The industry average in growth of product shipments is about 14 percent, while Dell's shipment to the Asia Pacific, excluding Japan, China and South Korea, was growing at 20 percent year-on-year.

"Our business is growing even faster in some of the emerging markets like Pakistan, Philippines and Indonesia," he said.

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