Quick Hits: Dell Looks to Russia for Sales
Brief scrutiny of today's headlines.
Dell (DELL) is aggressively moving into emerging markets in an effort to boost sales and increase market share.
Dell is second only to Hewlett-Packard (HPQ) in the personal computer market and recently started expanding its retail outlets to supplement online sales.
At an emerging markets conference sponsored by The Economist in London, company founder and CEO Michael Dell said the company isn't focusing just on first- or second-time buyers.
"With 15,000 stores, we want to sell all the PCs," Dell said, according to Reuters.
Last week, Dell said demand for PCs remained weak in the US and now lags in Europe and Asia. However, demand is strong in Russia.
The company plans to double its sales staff in Russia to about 100 by Christmas. Dell's customers in Russia include Yandex, the nation's largest Internet firm. Dell runs Yandex data centers.
Dell called Brazil, Russia, India and China, known as the BRIC countries, a "great market" for Dell despite high tariffs on some products and political instability.
Dell's revenue increased 41% on a 46% increase in units sold last quarter in the BRIC countries, or more than three times the industry growth rate.
He said emerging markets are a key element of Dell's growth strategy.
"500,000 new users are coming online every day, and a large portion of these are in emerging economies," Dell said.
Dell said the company planned to give away 1% of pretax profits to education and what's known as "digital inclusion projects" -- most in emerging markets -- by February 2010.
Dell's competitors include Apple (AAPL), Lenovo and Acer, a Taiwanese company.
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