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Dell Sets its Sights on Emerging Markets

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By Tom Ivan

September 24, 2008

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Dell is hoping that its move away from online-only sales will gain its products favor with consumers in emerging markets.

Chief executive Michael Dell outlined the importance of emerging markets to Dell’s growth strategy during a conference organized by the Economist, reports Reuters.

"Five hundred thousand new users are coming on line every day, and a large proportion of these are in emerging economies," he said.

Dell also said that growing cellphone adoption boded well for PC sales. "Users tend to buy their first PC about three years after buying their first cellphone."

The PC maker is currently witnessing slow product demand, which has spread from the United States to Europe and Asia, but the company achieved revenue growth of 41 percent on a 46 percent increase in units last quarter in the BRIC countries (Brazil, Russia, India and China), which it said was more than three times the industry growth rate.

"When markets go through these perturbations you have to be there to support your customers," Dell said.

Picture: SF Chronicle