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Wed, Jul 28, 2004 - Page 12 News List

Dell CEO targets China PC market

AFP , Tokyo

New Dell Inc CEO Kevin Rollins, left, confers with the company's Japan unit president, Hiroshi Hamada, at a press conference yesterday in Tokyo.

PHOTO: AFP

Dell Inc CEO Kevin Rollins said yesterday the world's biggest PC was increasing payrolls wherever it operates worldwide, dismissing concern over outsourced US jobs.

Rollins, who took over the top job from founder Michael Dell on July 16, acknowledged there was "a lot of concern, I think frankly due to the presidential election, regarding labor and employment in the US."

He said Americans were not facing more job losses, as most recent statistics suggested that the US labor market was picking up.

"However, there has been a concern also of offshoring -- of jobs leaving the US that would never come back," Rollins told his first Tokyo news conference since he became Dell CEO.

"We don't refer to offshoring, we refer to `all-shoring,' which means that as we grow globally we have to provide jobs in every country in which we move," Rollins said.

Rollins said Dell had been increasing payroll headcounts in the US, Japan and other countries. He said Dell needed to accelerate growth outside the US, and Japan and China were "key strategic countries" given the size of their markets and educated customer bases.

"China is growing very, very rapidly and [is] in need of our technology. China will frankly surpass both Japan and the US (in market size) in time," he said.

In the three months to June, Dell raised its share of Japan's PC market to 12.2 percent from 10.5 percent in the previous quarter, aided by sales to corporations, the company said.

Dell plans to raise its market share in Japan to about 18 percent to 19 percent soon, said Hiroshi Hamada, president of the com-pany's Japanese unit, without elaborating on the time period. That would make it the top PC supplier in Japan, outdoing Japanese rivals Fujitsu and NEC.

``Our market share will reach first or second in Japan in the near future if we continue doing what we're doing,'' Hamada said at the same event. About 80 percent of the company's business in Japan is selling to companies, he said.

Dell raised its second-quarter profit forecasts on July 16 as higher sales in Asia and Europe helped cut its tax rate. Net income will increase to US$0.31 a share, US$0.02 higher than Dell's projection in May, Rollins said at a meeting with shareholders.

Dell had 18 percent of the global PC market to Hewlett-Packard Co's 16 percent. Dell's shipments gained 23 percent to 7.26 million units in the quarter, industry researcher IDC said.

Sales at Palo Alto, California-based Hewlett-Packard rose 15 percent to 6.23 million units.

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