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Dell Exits Low-End China Consumer PC Market


08/15/2004

HONG KONG (Reuters) - Dell Inc., the world's largest PC maker, said on Monday it has left the low-end consumer PC market in China and cut its overall growth target for the country this year due to stiff competition in the segment.

"What we found was happening was some of our competitors decided to get really aggressive in the consumer space," Bill Amelio, president of Dell's Asia Pacific region, told Reuters in a phone interview.

"They decided they wanted to get really aggressive in the lower price bands. So we pulled out of the lower price bands and moved up into higher price bands in the consumer space. That's where we're going to hang for a bit."

As a result of the shift, Dell now expects its PC shipments for China -- its fourth largest market worldwide -- to grow "closer to two times" the overall market rate, rather than the target of three times it previously set.

International Data Corp. has forecast the China PC market, the world's second largest, will grow about 19 percent this year.


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