ConsolidationBy Reuters | Posted 2008-10-22 Email Print
Dell expects to grow faster than the industry this year but CEO Michael Dell added that it is hard to say whether the global PC market will improve heading into the year-end. While slashing jobs, Dell, which made nine acquisitions in the past two years, will continue making buys as the industry consolidates, Michael Dell says.
The company, which has $10 billion cash on its balance sheet currently, will continue to make acquisitions to boost its technological capability and services, he said.
"We have already made about nine acquisitions in the past two years. I think you will see us continue to do that," he said.
"There is no question the industry is consolidating ... I think there will be a smaller number of survivors. We see Dell as not only surviving but thriving in this kind of environment."
In China and Hong Kong, Dell has seen 30 percent sales growth so far this year, in line with recent years, although that fast-growing market also poses uncertainties.
Alex Yung, Dell China vice president, told Reuters: "Honestly, how things will turn out next year is hard to say.
"We don't know what kind of policy the Chinese government will come up with. If they continue to encourage domestic consumption, we wouldn't be too worried," Yung said.
"And also if the Chinese banks are not pulled too far into global financial turmoil, we wouldn't be too worried."
Yung later told a presentation for reporters that the company was seeing a mixed performance in various sectors of the market in China, with a particularly heavy impact on demand from export-oriented small companies, which have been hurt by the global economic slowdown.
"The consumer segment is doing very well," he said.
"From the commercial side, we see continued good growth in the public sector, state-owned enterprises and also some of the global businesses that we have locally. We definitely see some challenges in the small and medium-sized businesses." (Editing by Edmund Klamann and Sharon Lindores)
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