UPDATE 2-Dell says may outpace industry sales growth this year
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NEW DELHI, Aug 13 (Reuters) - Dell Inc (DELL.O), the world's second-largest personal computer maker, could grow faster than its peers, as it launches new products and sells its systems through major retailers, its chief executive said.
Michael Dell said on Wednesday he expected industry computer sales worldwide in the second half of this year to exceed the first half as slowing economic growth globally drives computer demand as businesses look to improve efficiency.
He added that a total of about 300 million computers could be sold in 2008.
"I think the overall industry growth will be pretty healthy. I feel it is possible that Dell will grow faster than the industry," he told reporters on a visit to the Indian capital.
On Tuesday, Dell introduced a line of portable computers, hoping that lighter machines with longer-lasting batteries will drive sales to business customers.
The product rollout was the largest for Dell since it posted a higher-than-expected quarterly profit in May, which was driven by cost cuts and strong demand from consumers and non-U.S. markets, led by Brazil, Russia, India and China.
At that time, Dell pointed to the strong performance as evidence that a year-long turnaround led by its founder, who returned to the chief executive post in January 2007, was working.
"When we evaluated our position ... said okay ... we need to reboot the Dell operating system," Dell said on Wednesday. "What you are seeing is kind of a new Dell that is emerging."
Research firm IDC has said worldwide PC shipments were expected to rise 13 percent to reach 296 million units in 2008 and would grow about 10 percent in each of the next two years.
Last month, surveys showed growth slowed in the U.S. market, the world's largest economy, for home and business computers in the second quarter because of the ongoing economic uncertainty.
However Dell, which trailed Hewlett-Packard Co (HPQ.N) in worldwide shipments but remains the U.S. market leader, shipped 5 million PCs domestically during the quarter, increasing its market share by 12 percent from a year ago, the surveys said.
The Round Rock, Texas-based company last year abandoned a long-standing direct-only sales model and started selling PCs in retailers including Wal-Mart Stores Inc (WMT.N) and Best Buy Co (BBY.N) in North America, Carrefour SA (CARR.PA) in Europe and China's GOME Electrical Appliances Holding Ltd (0493.HK).
Dell, which considers India as its fastest-growing market, aims to reach $1 billion in revenue in 2009, from $700 million in 2007, Paul-Henri Ferrand, president of its Asia Pacific business said. The company has a computer-making facility in southern India with annual capacity of 1 million units.
It also runs four customer contact centres in Bangalore and Hyderabad in south India, and Delhi and Chandigarh in the north. (Reporting by Devidutta Tripathy; Editing by Charlotte Cooper/Toby Chopra)
