Dell expansion on mainland spells greater investments
The US computer giant is planninga big push into IT services and software business in its second-largest market
Dell will steadily increase its investments on the mainland, as the computer maker this year expands into the information-technology services and software business in its second-largest market after the United States.
Texas-based Dell, the world's third-largest supplier of personal computers, is spending more than US$25 billion a year on the mainland in terms of manufacturing and sourcing of information-technology components and related products.
"We're making significant investments in China and it's growing," said Dell president Steve Felice, without elaborating on how high the spending would rise.
Felice, who also serves as Dell's chief commercial officer, said the company was broadening its capabilities on the mainland to help more firms improve their efficiency, respond more quickly to business demands, mitigate security risks and simplify their information-technology infrastructure.
Market analyst firm Forrester Research forecast total spending by mainland businesses and the government on information-technology hardware, software and services would grow 11 per cent this year to 733 billion yuan (HK$911.3 billion), up from an estimated 662 billion yuan last year, which should augur well for Dell's expansion initiative.
Dell, the mainland's No 1 supplier of server computers and No 2 personal computer brand, is expected to continue selling more hardware in the market, according to Amit Midha, the company's president for Asia-Pacific and Japan operations.