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How India is hurting Dell


2 May 2011
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CHENNAI: Weaker performance in India brought down Dell's first-quarter earnings in the Asia Pacific & Japan (APJ) region as the company's revenue in the region stood at $3.1 billion, down 0.5% sequentially.

"Demand was down in many countries, most noticeably India, which affected the results," said Amit Midha, president, APJ, Dell. Globally, the revenue fell 4% to $14.4 billion. First quarter profit declined by 33% to $635 million from $945 million in the same quarter last year.

Midha highlighted the macroeconomic challenges posed by the fluctuation in rupee. He also cited the activity in the low-end consumer PC segment. "We remain number one in revenue but not in units. So there is clearly a shift in the market towards the low-end segment," said Midha. "Certain state governments in India gave out about 100,000 notebooks at around $260 and that changed the unit game dramatically. We stayed away from that because that is not part of our strategy."

Asked whether Dell would stay away from future government contracts as well, Midha said, "We remain committed to our strategy to serve customers' needs and to be financially successful. If we cannot make money on a certain project, we will certainly stay away."

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