Dell upgrades China spend

DELL   PROCUREMENT   CHINA

China – Dell may be spending over US$100 billion on procurement and other investments in China over the next decade, the company’s head of China operations predicted.

Amit Midha, head of Greater China and South Asia for Dell said the company is projected to spend US$25 billion in the country this year. Spend could reach US$250 billion over 10 years if it continues at the current rate, he added.

“If you think about it, be it design, manufacturing, procurement, sales, service support, there’s more and more that can be done more effectively in China than in many other places,” Midha said.

Dell is currently the second PC brand in China, Reuters quoted research firm Gartner, with a 9% share in the third quarter of 2010.

Midha reported web sales have been picking up in the country, and online sales is expected to account for 15% of the company’s growth in 2011.

Dell will also be expanding its overall presence to smaller cities apart from large corporate customers in bigger cities like Beijing and Shanghai.

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