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Saturday, March 22, 2008

Dell Plans $52 Billion in Chinese Purchases

Dell plans to buy $23 billion of components from China this year and $29 billion in 2009, helping it reduce costs while the company's main market, the United States, is facing recession.

The commoditization of computer hardware means competition is more a function of price and efficiency than quality and branding, making China a favorite place to source a broad range of goods, including electronic components.

"China is critical to Dell's global supply chain," founder and Chief Executive Michael Dell told reporters on Thursday.

The company lost top market-share spot to HP in 2006 as consumers favored buying notebook PCs in stores, leading it to abandon last year a long-standing direct-only sales model.

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