Friday, May 29, 2009

Dell Experienced Better Sales in Asia in First Quarter of 2009

Computer maker Dell saw better sales in Asia-Pacific market in the first quarter of the current fiscal year, even though the growth is still negative. Asian market contributed with US$2 billion to its $12.3 billion global revenue in the first quarter. The world wide market growth fell by 23 percent compared to the first quarter of last year, while the market growth of Asian market was 20 percent down in terms of year-over-year growth.

So, you can see that the overall performance in Asian region was not satisfactory for Dell, but still it was better compared to the performance of the rest of the world. Computer business fared better than other businesses in Asia. In fact, demand in large corporate business in Asia was mostly affected mainly because of economic downturn in Europe and America.

However, Dell hopes to do well in the Chinese market in the coming months mainly because of government’s stimulus package in the country. So, it is expected that it will be easier for Dell to recover from the economic slowdown in China than other Asian market. Though Indian market gives some hopes, the overall performance in South Asian market is not satisfactory at all. In fact, Dell has seen biggest drop in computer demand in South Asia.

I think, Dell should come up with some more Netbook models in the price-sensitive Asian markets like India, China Bangladesh, Pakistan etc. where there are huge population and price is the defining factor in these markets. Dell’s Netbook model Dell Mini has already seen success in various markets, I think, Dell should do the same thing in Asian markets too. Dell just needs some smart moves to recover their market growth in Asia.