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	<title>Retail News Update &#187; Acer Inc.</title>
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		<title>Dell making cheap computers for high-growing markets in India, China.</title>
		<link>http://artrm.com/retail-news/2008/08/dell-making-cheap-computers-for-high-growing-markets-in-india-china/</link>
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		<pubDate>Fri, 29 Aug 2008 09:03:45 +0000</pubDate>
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				<category><![CDATA[Marketing]]></category>
		<category><![CDATA[News & Articles]]></category>
		<category><![CDATA[Acer Inc.]]></category>
		<category><![CDATA[Dell Inc.]]></category>
		<category><![CDATA[Hewlett-Packard Co.]]></category>
		<category><![CDATA[Lenovo Group]]></category>
		<category><![CDATA[Vestro notebooks]]></category>

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		<description><![CDATA[BEIJING, China (AP) &#8212; Dell Inc. unveiled four low-cost computer models for China, India and other emerging economies Wednesday in a new bid to tap the potential of high-growth markets outside the United States. The two notebook and two desktop PCs are the first Dell models designed especially for emerging markets, said Steve Felice, the [&#8230;] <a class="more-link" href="http://artrm.com/retail-news/2008/08/dell-making-cheap-computers-for-high-growing-markets-in-india-china/">&#8595; Read the rest of this entry...</a>]]></description>
				<content:encoded><![CDATA[<p>BEIJING, China (AP) &#8212; Dell Inc. unveiled four low-cost computer models for China, India and other emerging economies Wednesday in a new bid to tap the potential of high-growth markets outside the United States.</p>
<p>The two notebook and two desktop PCs are the first Dell models designed especially for emerging markets, said Steve Felice, the U.S. computer maker&#8217;s president for the Asia-Pacific. </p>
<p>They are meant for small-business users and are to be sold in 20 countries across Asia, Africa and Latin America.</p>
<p>Strong sales in Asia helped Dell turn in better-than-expected results in the last quarter despite a slowing U.S. economy. It is due to report its latest quarterly results after the U.S. markets close Thursday, and analysts are watching whether it can maintain its growth pace.</p>
<p>&#8220;Our success is going to be largely dependent on our ability to expand globally,&#8221; Felice said in an interview.</p>
<p>Dell and rivals Hewlett-Packard Co., Taiwan-based Acer Inc. and China&#8217;s Lenovo Group are expanding aggressively in emerging economies as sales growth in the United States and other developed markets slows.</p>
<p>Dell&#8217;s first-quarter sales in China, India, Russia and Brazil &#8212; markets known collectively as BRIC &#8212; grew by 58 percent, about 10 times the U.S. rate, Felice said. He said Dell expects 20-30 percent annual growth in those markets in coming years.</p>
<p>Prices for the new Vestro notebooks will start at 3,299 yuan ($475) and for the desktop PCs at 2,999 yuan ($440).</p>
<p>Dell, based in Round Rock, Texas, broke with its usual development and marketing strategy for its latest products, Felice said.</p>
<p>&#8220;We used to design products for global requirements and distribute the same product globally,&#8221; he said. &#8220;In this situation, we started with talking to emerging country customers, designing a product for emerging countries, and our initial launch of the product is only in emerging countries. That&#8217;s a big departure in our strategy.&#8221;</p>
<p>The new Dell models were created by a Shanghai design center set up to focus on emerging markets, Felice said.</p>
<p>The move reflects a growing focus by global computer, automobile, consumer goods and other companies on creating products for increasingly prosperous customers in China, India and other emerging economies.</p>
<p>Beijing-based Lenovo, which acquired IBM Corp.&#8217;s PC unit in 2005, is targeting China&#8217;s vast but poor rural market with a basic PC released last year and priced as low as 1,499 yuan ($220).</p>
<p>According to Felice, industry forecasts say China&#8217;s computer sales should grow from 50 million units last year to 500 million by 2015, or double that year&#8217;s projected U.S. sales.</p>
<p>Dell built its U.S. business with Internet- and phone-based direct sales but has added retail distribution in China and elsewhere to reach more buyers.</p>
<p>In China, its computers are sold in 2,700 outlets of the Gome and Suning electronics store chains, which Felice said account for about half of Dell&#8217;s Chinese sales. He said Dell has a total of about 13,000 retail outlets worldwide.</p>
<p>&#8220;These economies are growing so fast that we don&#8217;t want to miss out on the opportunity,&#8221; Felice said. &#8220;But if we just use the direct model, it might take too long to get there.&#8221;</p>
<p>Dell is trying to expand its presence in China outside Beijing, Shanghai and other big eastern cities and sees 50 percent of potential sales in small, inland cities, Felice said.</p>
<p>&#8220;We&#8217;re getting out there as fast as we can,&#8221; he said. </p>
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