The head of Dell’s (DELL) Asian operation told the AP the sales of PCs and servers in the region "excluding China, Japan and South Korea to grow almost 20 percent in 2007 compared with the previous year."
The forecast is fairly silly and useless given the countries that are excluded in the figure.
But, the same executive also hinted that Dell may supplement its direct-to-customer internet and telephone sales with some retail outlet channel. The company has already begun to do this in the US.
The move of the new tactic from the US to Asia might signal one of two things. The first is that sales in larger Asian countries are lagging and retail may be viewed as a way to improve things. The other is that early results from the US have convinced Dell that moving away from its strictly direct model is something that the company should do worldwide.
Too tough to call.
Douglas A. McIntyre
Top Gaining Stocks
Top Losing Stocks