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Head of Dell lauds Korea’s PC market

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Mar 25,2004
Michael Dell, chairman and chief executive officer of Dell Computers, the largest personal computer maker in the world, said yesterday his company has high expectations for the Korean market and plans greater investment in the country. In Seoul yesterday, Mr. Dell told the JoongAng Ilbo: “We see Korea as a pillar of our market and a significant sector for Dell’s growth. Dell Korea has recently grown over 100 percent and is seizing a lot of opportunities.” To increase its share in the server and personal computer markets in Korea, the company will significantly increase investment here, he said. The information technology industry is recovering worldwide as the economy starts to pick up, he said, which Dell sees as an opportunity. Information technology companies, such as Dell and Hewlett Packard have been expanding into home electronics recently. “I would say this recent transition of PC makers is based on the changing role of PCs at home in this age of digitalization,” Mr. Dell said. “As PCs become more versatile, they become the center of home entertainment, which means more opportunities for Dell as the world largest PC maker.” Dell Computer is well-known for its direct sales business model. “The majority of our sales still come from direct sales through calls, but the ratio of online sales is continuously growing,” he said. “We plan to pursue these separate lines of sales.” When asked about the concept of utility computing, which HP, IBM, and Sun Microsystems are introducing ― meaning that like utilities, consumers have to pay only for hardware or software that they use ― Mr. Dell said: “The computer industry is one of those industries that is constantly and rapidly changing. To me, utility computing is more about marketing rather than actual results for customers.” He said his companyl has been viewed skeptically by many competitors and investors for its growth strategy. But Dell’s success is largely due to to its innovative logistics structure, and it will keep growing in the future, he said. Mr. Dell is a legendary figure in the computer industry. After founding Dell Computer in 1984, with just $1,000 in capital, he led the firm into becoming the world’s largest personal computer maker. (Full interview to follow on March 31). by Yoon Chang-hee


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