Monday, March 24, 2008
Dell Inc plans to buy $23 billion of components from China this year and $29 billion in 2009, helping it reduce costs.
"China is critical to Dell's global supply chain," founder and Chief Executive Michael Dell told reporters on Thursday.
"Dell will purchase $70 billion of computer-related supplies and equipment from China," he said, referring to total purchases over the 2007-2009 period.
The world's second-largest personal computer maker, Dell is far from alone in looking to China to reduce manufacturing costs and remain competitive.
Hardware makers such as Dell, Cisco and Hewlett-Packard (HP) could be hit hard by a U.S. economic downturn, Dell even more so because it relies on the U.S. for about half of its revenue, a much higher proportion than larger rival HP.
That makes China's role as a customer equally important to Dell, which saw a 54 percent rise in unit sales on the mainland during its last financial quarter.
"China is one of the most dynamic and fastest-growing economies in the world, and we've made significant business and social investments here in the past 10 years," said Michael Dell.
By: DocMemory
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