This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Dell Tries to Keep Its Grip on China

Stocks in this article: DELL AAPL GOOG BIDU HPQ TCTZF MSFT

SINGAPORE ( TheStreet) -- In June, Dell (DELL - Get Report) said it would open a directory's worth of new stores in China, targeting out-of-the-way but not too badly off cities in the hinterland as well as the obvious coastal markets.

PC isn't a swearword in China yet, but another asset to business. Dell says it's the No. 1 seller of X86 servers in China, where data centers are growing too fast for in-house management.

Last week a sales official with the Texas-based PC giant -- which has 11.54% world market share, according to Gartner -- said that by year's end it would start selling a new tablet only in China, probably at the cheap end minus some of the perks (speed?) that would add cost.

The firm also saw net income fall 72% in the second quarter and faces a split between a group including founder Michael Dell and Silver Lake Partners and one involving some company shareholders over whether to take the firm private. The shareholder meeting is scheduled for Thursday.

But those woes might as well be in a different orbit as Dell tries to make itself as relevant in China as diced chicken over rice. That's what they all say, given China's market size, but this particular multinational shows signs of doing it.

Dell calls China its second most important market overall after the United States, despite a cut in IT spending due to China's economic slowdown. Market research firm Gartner ranks Dell No. 2 for desktops and mobile PCs in China. Its latest China market share of 7.86% isn't the highest ever but appears under control.

Like most tech hardware vendors, Dell withholds figures on sales or even the number of stores in China. It won't say whether China business is growing. But at least Dell acknowledges a battle with Apple (AAPL), Hewlett-Packard (HPQ) and the homegrown Lenovo.

On the tablet front, the iPad -- still a status symbol in China -- has lost market share in the country, slipping to 28% in the second quarter according to American tech research firm IDC. The dropoff leaves a void for other tablet vendors, especially those that rely on Google's (GOOG) Android, an open mobile operating system that's obviously cheaper than iOS.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,318.94 -97.91 -0.56%
S&P 500 2,003.42 -17.83 -0.88%
NASDAQ 4,663.6870 -19.72 -0.42%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs