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August 18, 2011

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Dell revenue in China up 20%

DELL Inc's revenue in China jumped 20 percent annually in the second quarter as the computer maker tapped the boom in enterprise solutions and services as well as the consumer business.

Dell expects the revenue in the personal computer and tablet computer industry to grow rapidly in China due to the introduction of new systems such as Microsoft's Windows 8 and an improved Android operating platform by Google after the search giant announced on Monday it would buy Motorola Mobility for US$12.5 billion, Amit Midha, head of Dell operations in China and south Asia, said yesterday.

Midha saw the acquisition as "good news for Dell" although analysts said the purchase may affect other Android device makers such as HTC, Sony Ericsson and Dell negatively. He said the new patents Google gained from Motorola will make the Android system more reliable.

In the domestic market, the world's No. 2 PC maker saw revenue jump 20 percent, thanks to booming storage, data management and cloud computing services, which also boosted the company's profitability though it didn't reveal the figure.

"The Asian business (of Dell) is always impressive," Midha said in a phone conference.

In the quarter, global revenue was US$15.7 billion, up 1 percent annually, slightly missing analysts' estimates of US$15.75 billion. Its net profit surged 63 percent annually to US$890 million.

In the consumer business sector, Dell operates 2,000 service centers in China. It also launched a tablet computer in the domestic market last month to challenge dominant position of Apple's iPad.

In the second quarter, Dell still held the No. 2 position in the global PC market.

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