Michael Dell, the CEO of Dell Inc, in his statement said that he is upbeat about emerging markets like China, which is the firm’s largest market outside US, even in the wake of Challenges and slowdown in businesses.
China, which generates almost $5 billion for Dell in revenue on an yearly basis, has for years picked up the slack as the PC spending has waned in the developed economies. The world’s No.2 economy, China, is in the middle of a deceleration even though it is still outpacing many other countries.
According to Dell, it was bullish on markets like India, Brazil and China and was counting on Africa, which is now generating $1 billion in revenue annually and is expected to grow exponentially.
According to the CEO, there were still challenges in China and emerging markets were a big deal for them. Business slowdown in China is an accurate statement, according to Dell.
The board of Dell will be meeting in China in September , although the CEO didn’t tell what else might transpire there. The 2nd largest economy of the world has been growing at a slackest pace over the last 3 years , as per the official data that was released last week.
China and the other emerging markets have been bright spots for Dell and Hewlett Packard for long , as they struggle to sustain their growth while smartphones and tablets begin to eat into their markets. Also the crisis in Europe is likely to curtail PC-purchases in eth 2nd half of the year as well.
However, the economy in China is at the forefront of global growth and PC market is still expected to outpace the worldwide industry.