UPDATE:Dell Sees Asia-Pac Revenue Up In '10, Stable Gross Margin
August 28 2009 - 1:16AM
Dow Jones News
Computer maker Dell Inc. (DELL) said Friday it expects its
Asia-Pacific operations, including Japan to resume revenue growth
next year driven by rising demand in China and India, and sees
stable gross margin moving forward on stringent cost
management.
Dell said its revenue in the Asia-Pacific region, including
Japan for the quarter ended July 31 fell 21% from a year earlier to
US$2.0 billion. Its gross margin rose to 18.7% from 17.2% for the
quarter.
Despite the continued weakness in information-technology
spending worldwide, Steve Felice, Dell's president of small and
medium business, said he is seeing encouraging signs of increasing
demand in China and India.
"With the strength in China and India, the Asia-Pacific
operations will continue to report faster growth than other parts
of the world," said the executive.
The executive's comments came after Dell reported a 23% drop in
fiscal second-quarter earnings due to lower sales, as it continues
to battle weak technology spending, but it said it sees signs of
improvement. Felice also confirmed that Dell is in the pilot stage
of handset development with China Mobile Ltd. (CHL), the world's
largest mobile operator by subscribers.
He said the world's second-largest PC maker by shipments after
Hewlett-Packard Co. has yet to set a launch date for the first
handset or a price range.
China Mobile spokeswoman Rainie Lei said earlier this month
Dell's handset model - mini3i - supports the company's new online
platform which offers music, games, videos and other entertainment
applications for download to mobile phones.
In recent months, major personal computer makers have been
turning their attention to smart phones - mobile devices that offer
access to email and support other multimedia functions - as they
face stiff competition and pricing pressure.
Finding new ways to grow is especially important for Dell, which
has lost market share to major rival Hewlett-Packard and is
determined to boost its sales.
-By Lorraine Luk, Dow Jones Newswires; 852-2802-7002;
lorraine.luk@dowjones.com