Dell Dumping China, Moving Likely to India

[tarunraju]

I am a little confused, why do Indian friends become so excited about this?
Last time i check, some Indians laughed at China for this low-end manufacturing.

Because Dell isn't low-end, and $25 Billion dollars of investment, number of jobs, loads of taxes to our government is something to get excited about.

 

[Rage]

Well well well, here's the first candid admission that Dell may indeed be seeking to move to India.

Make of it what you will:


Dell Says India May Become New Manufacturing Hub

Friday, March 26, 2010, 9:37 AM EDT

By Mehul Srivastava, Connie Guglielmo, and Mary Childs

March 26 (Bloomberg) -- Dell Inc. Chief Executive Officer Michael Dell said in a conversation with Indian Prime Minister Manmohan Singh that the South Asian nation is poised to become a technology manufacturing center.

The remarks came this week during a discussion with Singh about ways to boost hardware manufacturing in India, Dell spokesman David Frink said in an interview. The company denied an account of the discussion by Singh, who said Dell may be looking for a “safer environment” than China.

“With the right kind of progress, Mr. Dell said that he believes India also has an opportunity to become a hardware manufacturing hub, generating employment and adding to that country’s impressive growth,” Frink said.

India, Asia’s third-largest economy, needs to spend $1 trillion on roads, ports, power and other infrastructure between 2012 and 2017 to help accelerate economic growth to 10 percent and cut poverty, Singh said this week. Getting computer makers like Dell to invest in India rather than China is “an area where there are immense opportunities,” Singh said in a March 23 speech to members of India’s Planning Commission.

Singh and Dell met a day after Google Inc. started routing China-based users to an unfiltered search service on its Hong Kong site. The move capped a standoff between China and Google, which in January said hackers in China stole data and targeted the e-mail accounts of human-rights activists.

‘Safer Environment’

Singh later said Dell was considering shifting purchasing of components from China to a “safer environment,” according to the text of the Indian official’s speech released by India’s Press Information Bureau. Dell denied that account and the Web site for the Press Information Bureau, where releases of Singh’s speeches are posted, no longer has a copy of the remarks.

“There was no discussion concerning any change in how or from where Dell will source component parts for the computers it manufactures in Asia,” Minari Shah, a Dell spokeswoman, said in an e-mailed statement. Harish Khare, a media adviser to Singh, declined to comment.

Dell said it has no plans to abandon its partners in China. The company currently spends about $25 billion a year on components from suppliers there.

Companies besides Google have been reluctant to publicly criticize China, the world’s third-largest economy, over the country’s Internet policies and alleged human rights violations.


Biggest, Fastest

China accounted for more than 60 percent of all PCs shipped in the Asia-Pacific region last quarter, according to Gartner Inc. Shipments in that area climbed 44 percent, the fastest rate among the regions surveyed, according to the Stamford, Connecticut-based researcher.

Still, India has lured technology investments as companies tap into its well-educated workforce. Dell has a design center in Bangalore. In 2007, the company opened a manufacturing and distribution hub in Chennai, according to the company’s Web site.

Rival Hewlett-Packard Co. also operates a research lab in Bangalore, as does Microsoft Corp., which opened a research lab and software development center there in 2004.

Cisco Systems Inc., the biggest network-equipment maker, said earlier this month that it plans to boost its workforce in India faster than anywhere else to meet surging data traffic. CEO John Chambers said the number of employees is projected to rise to 10,000 from about 6,000 today, though he didn’t specify a timeframe for the expansion.


Not Zero-Sum

Dell should consider expanding manufacturing in India since it is a key market for its products, said Ashok Kumar, an analyst at Northeast Securities Inc. in New York. He doesn’t own any Dell shares.

“India and China both see themselves as competitors for this economic opportunity, so it doesn’t have to be a zero-sum game,” Kumar said. “By sourcing and having larger manufacturing in India, they’re better positioned to service the local market.”

Dell, based in Round Rock, Texas, rose 3 cents to $14.90 in Nasdaq Stock Market trading at 9:33 a.m. New York time. The shares had climbed 3.6 percent this year before today.

India and China are two of the fastest-growing markets for Dell, which has been working to revive sales and profit after losing top rankings in the PC market to Hewlett-Packard and Acer Inc. over the past three years.

Sales in India were about $1 billion, or 2 percent of Dell’s total revenue. Dell is No. 2 in that market with a 13.6 percent share in the fourth quarter, according to researcher IDC, compared with Hewlett-Packard’s 16.2 percent.


--With assistance from Unni Krishnan and Bibhudatta Pradhan in New Delhi. Editors: Suresh Seshadri, Peter Elstrom, Tom Giles

To contact the reporters on this story: Mehul Srivastava at [email protected]; Connie Guglielmo at [email protected]

To contact the editor responsible for this story: Tom Giles at [email protected]


http://www.businessweek.com/news/20...ay-become-new-manufacturing-hub-update1-.html

 

[LETHALFORCE]

If DELL moves out of China that means all the sub vendors will also be doing the same, other storage, software, chip manufacturers etc... this will have a ripple effect, the chinese may think it is no big deal the new image of China as an unfriendly place to do buisness has an impact more than just numbers.

 

[badguy2000]

Well well well, here's the first candid admission that Dell may indeed be seeking to move to India.

Make of it what you will:


Dell Says India May Become New Manufacturing Hub

Friday, March 26, 2010, 9:37 AM EDT

By Mehul Srivastava, Connie Guglielmo, and Mary Childs

March 26 (Bloomberg) -- Dell Inc. Chief Executive Officer Michael Dell said in a conversation with Indian Prime Minister Manmohan Singh that the South Asian nation is poised to become a technology manufacturing center.

The remarks came this week during a discussion with Singh about ways to boost hardware manufacturing in India, Dell spokesman David Frink said in an interview. The company denied an account of the discussion by Singh, who said Dell may be looking for a “safer environment” than China.

“With the right kind of progress, Mr. Dell said that he believes India also has an opportunity to become a hardware manufacturing hub, generating employment and adding to that country’s impressive growth,” Frink said.

India, Asia’s third-largest economy, needs to spend $1 trillion on roads, ports, power and other infrastructure between 2012 and 2017 to help accelerate economic growth to 10 percent and cut poverty, Singh said this week. Getting computer makers like Dell to invest in India rather than China is “an area where there are immense opportunities,” Singh said in a March 23 speech to members of India’s Planning Commission.

Singh and Dell met a day after Google Inc. started routing China-based users to an unfiltered search service on its Hong Kong site. The move capped a standoff between China and Google, which in January said hackers in China stole data and targeted the e-mail accounts of human-rights activists.

‘Safer Environment’

Singh later said Dell was considering shifting purchasing of components from China to a “safer environment,” according to the text of the Indian official’s speech released by India’s Press Information Bureau. Dell denied that account and the Web site for the Press Information Bureau, where releases of Singh’s speeches are posted, no longer has a copy of the remarks.

“There was no discussion concerning any change in how or from where Dell will source component parts for the computers it manufactures in Asia,” Minari Shah, a Dell spokeswoman, said in an e-mailed statement. Harish Khare, a media adviser to Singh, declined to comment.

Dell said it has no plans to abandon its partners in China. The company currently spends about $25 billion a year on components from suppliers there.

Companies besides Google have been reluctant to publicly criticize China, the world’s third-largest economy, over the country’s Internet policies and alleged human rights violations.


Biggest, Fastest

China accounted for more than 60 percent of all PCs shipped in the Asia-Pacific region last quarter, according to Gartner Inc. Shipments in that area climbed 44 percent, the fastest rate among the regions surveyed, according to the Stamford, Connecticut-based researcher.

Still, India has lured technology investments as companies tap into its well-educated workforce. Dell has a design center in Bangalore. In 2007, the company opened a manufacturing and distribution hub in Chennai, according to the company’s Web site.

Rival Hewlett-Packard Co. also operates a research lab in Bangalore, as does Microsoft Corp., which opened a research lab and software development center there in 2004.

Cisco Systems Inc., the biggest network-equipment maker, said earlier this month that it plans to boost its workforce in India faster than anywhere else to meet surging data traffic. CEO John Chambers said the number of employees is projected to rise to 10,000 from about 6,000 today, though he didn’t specify a timeframe for the expansion.


Not Zero-Sum

Dell should consider expanding manufacturing in India since it is a key market for its products, said Ashok Kumar, an analyst at Northeast Securities Inc. in New York. He doesn’t own any Dell shares.

“India and China both see themselves as competitors for this economic opportunity, so it doesn’t have to be a zero-sum game,” Kumar said. “By sourcing and having larger manufacturing in India, they’re better positioned to service the local market.”

Dell, based in Round Rock, Texas, rose 3 cents to $14.90 in Nasdaq Stock Market trading at 9:33 a.m. New York time. The shares had climbed 3.6 percent this year before today.

India and China are two of the fastest-growing markets for Dell, which has been working to revive sales and profit after losing top rankings in the PC market to Hewlett-Packard and Acer Inc. over the past three years.

Sales in India were about $1 billion, or 2 percent of Dell’s total revenue. Dell is No. 2 in that market with a 13.6 percent share in the fourth quarter, according to researcher IDC, compared with Hewlett-Packard’s 16.2 percent.


--With assistance from Unni Krishnan and Bibhudatta Pradhan in New Delhi. Editors: Suresh Seshadri, Peter Elstrom, Tom Giles

To contact the reporters on this story: Mehul Srivastava at [email protected]; Connie Guglielmo at [email protected]

To contact the editor responsible for this story: Tom Giles at [email protected]


http://www.businessweek.com/news/20...ay-become-new-manufacturing-hub-update1-.html

the key word here is the "may".

everybody here should know the exact meaning of "may". it is "perhaps to be,maybe,probably ".

When people use "may", another meaning of his expression is usually that "it may be,but it also may not be" and he won't be responsible for the "may not be".

so, "may" is a word as cheap as toilet papers and another word "to"

 

[badguy2000]

See, today the market is China. If the conditions change to worse, the market will change to some other place.Some other place will be saving asses then.Market is the GOD/BOSS and not China.

guy, market can not be easily changed.

do you know what is the market?

1. people are ready to buy it;
2. people can afford it.

in the world now, only 3 economy can be called world market: USA,EU and CHina,because only 3 ones are ready to buy it and can afford it.

other countries either can not affrod much (most developing countires like India) or are not ready to buy more (Japan,Australia).

that is why CHinese consumed 10 times more steel, cements,household appliances than Indians.

 

[NSG_Blackcats]

guy, market can not be easily changed.

do you know what is the market?

1. people are ready to buy it;
2. people can afford it.

in the world now, only 3 economy can be called world market: USA,EU and CHina,because only 3 ones are ready to buy it and can afford it.

other countries either can not affrod much (most developing countires like India) or are not ready to buy more (Japan,Australia).

that is why CHinese consumed 10 times more steel, cements,household appliances than Indians.

India and Indians cannot afford DELL products. This is the biggest joke of 21st Century.

Badguy, I do not know from where do you get these craps from. By the way Google is moving out of China. The word "maybe" was also used with this news a few months before. So lets wait few more months for DELL.

 

[badguy2000]

India and Indians cannot afford DELL products. This is the biggest joke of 21st Century.

Badguy, I do not know from where do you get these craps from. By the way Google is moving out of China. The word "maybe" was also used with this news a few months before. So lets wait few more months for DELL.

guy, pls check PC sales in India and that in China....

38.82 million PC were sold in China in 2009.

how many PC were sold in India? As I checked, 4.6 million computers( including Personal computers and other computers) were sold in India in 2006.

PLS check the gap.

http://www.pcpop.com/doc/0/138/138871.shtml
市场调研公司IDC印度周一发布的报告，受来自政府和中型企业需求活跃推动，在截至于今年年3月的06财年里，印度电脑销量较之前一年激增30％。

据外电报道，IDC印度称06财年印度共销售了460万台电脑。IDC印度分析师Piyush Pushkal说：“对于大型企业领域来说，情况照旧；这样优秀的市场表现主要得益于政府和中型企业领域旺需求的强劲增长。”

http://tech.hexun.com/2010-03-03/122835785.html
月2日,赛迪顾问计算机产业研究中心数据显示:2009年,中国PCs整体市场销售规模达到3882万台,同比增长17.7%,销售额为1817.2亿元,同比增长10.8%。3G商用,芯片与操作系统新品推出及电脑下乡以旧换新等刺激内需政策出台推动消费类市场增长。

 

[LETHALFORCE]

you are right BG how silly of DELL they cannot move operations and continue to sell computers in China. They said they are moving operations not they will stop selling in China a big difference in both.

 

[Rage]

the key word here is the "may".

everybody here should know the exact meaning of "may". it is "perhaps to be,maybe,probably ".

When people use "may", another meaning of his expression is usually that "it may be,but it also may not be" and he won't be responsible for the "may not be".

so, "may" is a word as cheap as toilet papers and another word "to"

Don't teach me semantics.

The operative word is 'may', simply because no company in the world wants to attach liability to projected and protracted disclosures.

When a company says 'may' out in public, it bloody well means it intends to execute the decision bar unforeseen circumstances and a change in favorable business climate.

guy, market can not be easily changed.

do you know what is the market?

1. people are ready to buy it;
2. people can afford it.

in the world now, only 3 economy can be called world market: USA,EU and CHina,because only 3 ones are ready to buy it and can afford it.

other countries either can not affrod much (most developing countires like India) or are not ready to buy more (Japan,Australia).

that is why CHinese consumed 10 times more steel, cements,household appliances than Indians.

Dell India biz growing at 100 per cent

The following in related news:

Dell to effect leadership changes in India

 

[badguy2000]

Don't teach me semantics buffoon.

The operative word is 'may', simply because no company in the world wants to attach liability to projected and protracted disclosures.

When a company says 'may' out in public, it bloody well means it intends to execute the decision bar unforeseen circumstances and a change in favorable business climate.



Clown, are you an idi@t?

Dell India biz growing at 100 per cent

The following in related news:

Dell to effect leadership changes in India

2 M to 4M is a growth of 100%.

30M to 40M is just a growth of 33%.

which one is more impressive,guy?


From material to industry products, CHinese buy much more than Indian every year.which is a plain fact.
Market is boss /God. and now, CHina has a much bigger market than India ,so China is the boss now.

If MNCs hadto select one between China and India, most of them would abandon india andn select China,not for their more love of Chinese people,but for their more love of Chinese people's wallet.

can't you accept such a plain fact? iiiiiiiiiiiiiiiiiiii

 

[Rage]

2 M to 4M is a growth of 100%.

30M to 40M is just a growth of 33%.

which one is more impressive,guy?

First bubba boy, that was aimed directly at your assertion that Indians "could not afford Dell products".

Second,

The United States has an economy of $14 trillion with an estimated 5.6 percent growth in the fourth quarter of 2009. China has an economy of $4.91 trillion USD in 2009, with an estimated growth of 8.7% in the last quarter. Which one is more impressive?

Additionally, your figure is 38.2 million PC's cumulatively for China, not Dell- in 2009. Your figure of 4.6 million PC's for India is outdated, from 2006. Do not inflate or deflate figures, when you see them fit. India's PC sales were 1.97 million units in October-November (single, continuous month) 2009 alone, and 2.19 million units in July-September, 2009 alone. I've found no cumulative figures for the entire session 2009, but we can logically extrapolate that for a recessional year to approach a minimum of 12 million PCs in 2009.

From material to industry products, CHinese buy much more than Indian every year.which is a plain fact.
Market is boss /God. and now, CHina has a much bigger market than India ,so China is the boss now.

If MNCs hadto select one between China and India, most of them would abandon india andn select China,not for their more love of Chinese people,but for their more love of Chinese people's wallet.

can't you accept such a plain fact?

What kind of clown are you?

From materials to consumer durables to industrial products, the United States consumes far more than does China. Does that mean that "companies would 'abandon' China" and "leave for the United States"?

Companies are interested in where there is growth, and potential.

The Indian market is expanding at a far higher rate than its Chinese counterpart, for obvious reasons of juxtaposed saturation and infancy.

Given the trade sanctions our government has engaged in vs-à-vis yours, the lack of infrastructure in India, comparative cost efficiencies - growing, particularly with the rise in Chinese wages and the massive $1 trillion spending on India infrastructure in the next five years, and the current and antecedent political climates in China, it is natural for companies to plan to produce closer to their fastest growing consumer base.

 

[badguy2000]

First bubba boy, that was aimed directly at your assertion that Indians "could not afford Dell products".

Second,

The United States has an economy of $14 trillion with an estimated 5.6 percent growth in the fourth quarter of 2009. China has an economy of $4.91 trillion USD in 2009, with an estimated growth of 8.7% in the last quarter. Which one is more impressive?

1. Nobody here insist that China be equal to USA now. Instead, I acknowledge it and never refuse to face the fact. We always think that it is a bravery and virtue to face shortages.

2. it is unnessary to bring USA-China gap in to make CHina-India gap reasonable and Indian netizens here more comforable, isn't it?

3. one correction. CHina contributed more to global economy growth than USA did in 2009.

5.6% is quarterly growth of USA economy. its yearly growth 2009 is 0.25%.
http://www.tradingeconomics.com/Economics/GDP-Growth.aspx?Symbol=USD

 

[Yusuf]

If there is no better things to discuss, I will close this thread. Aren't you people not tired of the same old stupid comparisons?

The jist of the thread was businesses moving away from china for one reason or the other. The beneficiary may or may not be india. Also if China is the be all and end all for all business then india or other major developing economies would not have got any FDI at all. Each and every corporate house would have just looked at china and stayed there. Once the saturation limit is reached, other markets will drive the world trade. Why is all that so hard to understand?

Have you seen the way mobile connections have increased over the last few years? 10 years ago it was a luxury. Now even porters and those earning like 3 dollars a day also own a cell phone. Its all about projections for the future. China is where it is today after being no where for 40 years. But the world so potential and came to it. India started a bit late but is getting up there. Its easier to keep doubling smaller figures like sale of computers from 2 to 4 and to 8.45. But once you touch about 30 growth rate falls. So technically in 10 years it will all even out.

All the figures of sale harped upon doesn't mean it shows the whole picture. What is the sale of such systems in germany france, britain? So is it a bad country for big international players? No they will have lesser sales as it is a saturated market.

For the last time, BG I am warning you not to derail threads and turn them into sales figures thread for all things china is buying. I am not going to warn you again. Next time will be a straight forward ban. Its getting too irritating from you these days.

 

[Rage]

1. Nobody here insisnt that China be equalt to USA now.

2. it is unnessary to bring USA-China gap in to make CHina-India gap reasonable and Indian netizens here more comforable, isn't it?

3. one correction. CHina contributed more to global economy growth than USA did in 2009.

5.6% is quarterly growth of USA economy. its yearly growth 2009 is 0.25%.
http://www.tradingeconomics.com/Economics/GDP-Growth.aspx?Symbol=USD

1. You have serious problems in your comprehension of English.

2. The US-China GDP gap was brought in to make you realize that nominal, absolute differences are not necessarily more 'impressive' that percentage growth-rate differences.

3. I could give a fig as to what China 'contributed' to the global economy, 2009.

4. Your last point only serves to demonstrate the validity of my argument.

 

[NSG_Blackcats]

guy, pls check PC sales in India and that in China....

38.82 million PC were sold in China in 2009.

how many PC were sold in India? As I checked, 4.6 million computers( including Personal computers and other computers) were sold in India in 2006.

PLS check the gap.

Baddy, Stop crying about China is so and so. We all know that.

In your last post you said India cannot afford DELL products. Now you are comparing the no of PC sales in India and China. You are making making a 180 degree twist.

Here is the Indian sale figures for Sept 08 to June 09 (9 months)

PC sales - 4287074 (4.29 million aprox)
Notebook - 1927218 (1.93 million Aprox)
---------------------------------------------------
Total - 6214292 (6.214 million Aprox)


Source

FYI , 6.214 millions sale in 9 months is not a small number. More interestingly these are not Chinese craps .

 

[Armand2REP]

Dell isn't leaving China, they are focusing on the "services sector" as hardware profits have dwindled. Hardware profits in India are at record highs, so follow the money trail. Dell shifts its hardware operation to India.

 

[Pintu]

Good discussion is taking place , however a request to everybody, please remain on topic, and since grey market has its effect in Indian Economy, I am opening a thread 'Grey Market and its impact on Indian Economy' we can discuss about Grey Market there, as such the posts related to Grey Market is going to be shifted there. In the meantime the thread is closed temporarily

 

[Pintu]

Thread is opened after moderation , please post your views on Grey Market , in the new thread , thanks for the coopeartion

 

[nimo_cn]

Facebook mulls entering China market

Facebook, the world's largest social networking service (SNS), has stepped up its efforts in entering the Chinese market and plans to enter the country this year, according to local media reports citing unnamed sources.
But the reports did not elaborate on details about the plan.
Analysts point out there are only two ways for the popular site to enter the Chinese market; one is to establish a joint-venture and the other is a merger or acquisition.
Lv Benfu, vice director of the Graduate University at the Chinese Academy of Sciences, said that if Facebook wants to enter China, the best way is to simulate the model of Myspace, which set up shop in China and shares data with the US market, but does not completely copy American ways.
Actually, as early as 2007 when Facebook registered the domain name of ".cn" and launched the Chinese version in 2008, there has been market information about Facebook wanting to enter the China market, but until now, the website has not done so.
"Facebook has tried many times to enter the Chinese market and its efforts have lasted a long time," said Hu Yanping, director of the Data Center of China Internet (DCCI). But he was not optimistic about Facebook's plan, since he believes that under the current domestic competition environment, the firm's advantage as an open platform will make it hard for it to complete effectively.
Yu Yi, an analyst at Analysys International, said that if Facebook enters the Chinese market as a traditional SNS, there is less room to develop.
But Lv believed that Facebook's entrance into China may affect domestic SNS networks since many applications of the domestic SNS networks just copied Facebook, as the American-based website is the leader in the varieties of software applications.
Also, compared with the Chinese mainland, Facebook has become the most popular SNS in Taiwan. According to the data from checkfacebook.com, Taiwanese users have exceeded 5.06 million, while those in the Chinese mainland are only 56,000.
Facebook saw good results in the global market, as March data showed that Facebook has exceeded Google as the most visited website over the search engine giant.

http://business.globaltimes.cn/industries/2010-04/519739.html

 

[blade]

the key word here is the "may".

everybody here should know the exact meaning of "may". it is "perhaps to be,maybe,probably ".

When people use "may", another meaning of his expression is usually that "it may be,but it also may not be" and he won't be responsible for the "may not be".

so, "may" is a word as cheap as toilet papers and another word "to"

Yes mr.bad guy we are extremely thankful to for posting such a beautiful clarification of the word "MAY" now let me tell you that MAY stand for probability and not MAY or MAY not be. MAY & MAY OR MAY NOT BE are not identical phrases in english. When we say brazil may be this years world soccar champion we tacitly imply that it has the potentiality to achieve it otherwise people would have said china in that place as well. I know where it burns when you find slowly but surely things are turning out to be a china vs india in the international forum but that dosnt mean u will change and misinterprete the whole of english just to bring out some face saver.Do u think DELL say this same things with your gr8 chinese napkin "may" while talking about peru ,ghana or say pakistan ????? No they will not ..because they dont hv the potentiality to be there which india definitely has. HEre wht he means is INDIA has
enough potential and if there is everything going as per the present scenerio then wht may happen likely. Now if you are planning to attack the word" IF" then let me tell u in 2011 whole of china may be begging in the road of india, china , pakistan and russia for daily food as srilanka MAY conquer china.So u understand the likely hood of India geting dislodged from paths of huge growth and stardom is as likely as china being conquered by srilanka. Good luck happy eanglish reading.