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Home >> Business
UPDATED: 17:33, December 02, 2005
How far can Dell China's direct sales go ?
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The PC sales growth rate of Dell China, which has always been the computer giant's eternal fame, begins to take turn for the worse.

Recently, the PC sales report in the Chinese market third quarter this year released by IDC, the premier global provider of market information services for the IT and telecommunications industries, shows that Dell's market share has fallen to 8.2 percent from 9.6 percent in the second quarter this year. However, data from Analysys International says that the market share of Dell China in desktop market in the third quarter this year was 7.5 percent, lower than 8.1 percent in the second quarter; and that in the laptop was 12.4 percent, also lower than 14.3 percent in the second quarter.

To Dell's surprise, several domestic computer makers have witnessed some slight market increases in the third quarter. According to IDC, the PC sales volume in the Chinese market in the third quarter recorded a year-on-year increase of 21 percent, with Lenovo taking up 34.5 percent of the market share, slightly higher than 33.8 percent in the previous quarter, Founder yielding 12.7 percent, 0.6 percent higher and HP making up 7.5 percent, 0.2 percent higher than that in previous month.

Dell's problem in China is not new. Since beginning this year, Dell's service has been frequently complained by customers across the country. In September, several Dell users complained that Dell China showed indifference towards complaints from customers, and therefore its direct sales pattern was unaccustomed to the Chinese market for the lack of high-level after-sale services.

In April this year, Business Weekly also launched attacks against Dell's direct sales pattern, pointing figures at its insufficiency in terms of software and service. Some insiders held that the main reason for the decline of Dell's market share lies in the slump of its direct sales pattern in burgeoning cities.

The market share of Lenovo grew rapidly after the acquisition of IBM's PC business, which dealt a heavy blow to Dell China.

The sudden resignation of Dell China's president on Oct. 25 made insiders associate his decision with the poor business volumes in the third quarter this year.

Dell China noted in September this year that it will carry out the direct sales pattern in the country. It is high time for Dell China to ponder over how far its direct sales pattern can go.

By People's Daily Online


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