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June 10, 2010

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Dell sees over 25% revenue rise

DELL Inc's revenue in China will grow more than 25 percent annually, higher than the industry growth, this year due to its expansion in the server and service business for enterprises, following its US$3.9 billion acquisition of Perot, the United States-based company said yesterday.

The world's No. 2 personal computer maker has "transformed" its operations and seeks to penetrate the high-margin IT service market to compete with IBM and HP, said Jim Merritt, Dell's large enterprise (LE) business president of Asia Pacific and Japan region.

"We are in the process of transforming from a hardware company only to a solution company," said Merritt during an exclusive interview with Shanghai Daily.

In the first quarter, Lenovo maintained the leader in Chinese LE market with a market share of 38.3 percent, followed by Dell's 25.3 percent market shares and HP's 16.7 percent, according to IDC, a US-based IT research firm.

The LE business, covering server, service and enterprise PCs, is a profit engine for Dell's Asia Pacific Japan region, especially in China and India, said Merritt, who mentioned LE clients referring to enterprises with more than 500 people.

Dell is also the IT sponsor of the USA Pavilion at the World Expo.
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