Dell Computer International Sales
Global Revenues for Notebook Computers & Wireless Products Up 22%
Dell designs, develops, manufactures, markets, sells and supports a wide range of computer items.
The company sells mobility products led by a growing portfolio of notebooks and other wireless gadgets, desktop computer systems, software and peripherals, servers and networking equipment as well as storage products. In addition to being America’s number one seller of servers, Dell offers many computer-related services such as training and client support.
Dell Retail Revenues Add to Direct Sales
Also during first quarter 2009 (which ended on May 2, 2008), Dell expanded its global customer base to 13,000 retail locations around the world.
Second in world laptop sales only to Hewlett-Packard, Dell accomplished its customer growth by starting to sell desktop and notebook computers, printers, ink and toner via American and international retail channels. For many years, Dell was known as the world’s number one direct-to-customer computer vendor.
Just as Dell has grown its retail sales through strong business relationships with big box retailers like Staples and Best Buy in the United States and Canada, the company is committed to developing strategic relationships with major retailers in larger geographic regions including Europe, Asia, the Middle East and Africa.
To reflect a refocus on retail channels in addition to traditional direct sales marketing, Dell restructured its businesses into four major segments based on geography.
Dell’s New Operational Segments by Geography
Below are company sales by segment for the quarter ending May 2, 2008.
- Global Consumer … US$2.9 billion (up 20.5% from first quarter 2008, 45% of total sales)
- APJ Commercial (Pacific Rim, Australia, India) … $2 billion (up 18.6%, 24%)
- EMEA Commercial (Europe, Middle East, Africa) … $3.8 billion (up 14.7%, 13%)
- Americas Commercial (U.S., Canada, Latin America) … $7.3 billion (up 0.7%, 18%).
Dell’s Global Consumer Sales
Up over 20% from last year, Texas-based Global Consumer represents Dell’s fastest growing international business segment principally because of robust mobility product sales through retail channels and increased demand for Dell software and peripherals. Mobility revenues via retail grew almost 50% in first quarter 2009 even as prices dropped, a clear sign that consumers are moving to laptops and notebooks. Meanwhile, revenues from desktop computers fell 5%.
Going forward, Dell management expects growth in demand for notebook computers to outpace desktop PCs by six to one.
Dell’s APJ Commercial Sales
APJ Commercials sales grew almost as fast as Dell’s Global Consumer revenues. Commercial business sales are made to corporate, government, healthcare and education customers as well as to small and medium businesses. APJ commercial markets experienced a 36% growth in mobility product sales, again reflecting the continued shift in customer preference from desktops to notebooks.
Led by India’s 52% revenue increase and China’s 30% gain, four highly populated countries also generated higher sales during the first quarter: Indonesia, Thailand, Philippines and Malaysia.
Dell’s EMEA Commercial Sales
EMEA Commercial revenues were up 15%. The major drivers for this increase included an increase of 48% in storage product sales and a 32% higher demand for mobility products. Strengthening Euro and British Pound currencies against the U.S. dollar also helped to galvanize demand for Dell products in Europe and the United Kingdom.
Dell’s Americas Commercial Sales
With the notable exclusion of recession-bound United States, Latin American countries and Canada accounted for most of the increased sales in the Americas Commercial segment. Growth in these so-called Americas International countries was led by Brazil Commercial, with a 50% year-over-year revenue increase from the year-ago quarter for fiscal 2008.
Americas Commercial spending from financial services customers and small to medium-sized businesses slowed, leading to decreases in sales of desktop and mobility products of 12% and 2%, respectively.
Restrained spending in the United States for computer products is expected to continue for the rest of 2008.
