Dell Technology is reportedly planning to double down on its investments in China to hopefully drive up its growth in the country's lucrative software and hardware markets. Dell revealed plans to invest at least $25 billion in its Chinese operations next year to bring more cutting-edge products to Chinese consumers.
The company's vice president and general manager of government affairs, Zhou Bing, stated that the company believes that China does offer unimaginable potential. Zhou added that Dell aims to take advantage of the country's potential by launching next-generation products, including advanced storage and server solutions.
The fact that China is also currently leading the world in the adoption of next-generation telecommunications technologies, such as 5G, gives it an edge when compared to other markets. Dell is planning to develop its future products to take advantage of 5G networks and china will be the perfect place to launch its products given that it is the pioneer in 5G commercialization.
At the recently held second China International Import Expo (CIIE) in Shanghai, Dell executives stated that they are prepared to invest at least $25 billion in China in 2020. The investment will be part of the company's "In China, For China" strategy. The figure that was mentioned is likely a modest estimate by the company, given that it had on average invested over $33 billion annually in China.
A bulk of the company's investment will reportedly be utilized for its businesses related to digital information. This includes major investment in products and services related to technologies such as artificial intelligence, 5G, internet of things, and smart manufacturing.
Dell believes that China's technological trend should generate a lot of revenue for the company in the coming quarters. The company mentioned that it is already busy conducting research and development on several products and solutions for both consumer and enterprise-level applications.
China is currently Dell's second-largest market and the majority of its products are produced in the country. According to the president of Dell China, Huang Chenhong, the company's manufacturing facilities in China churn out an average of 80,000 products per day. This equates to about 73 percent of Dell's overall global productions.
Apart from its three major factories in China, Dell also operates two global services centers and eight research and development facilities. The company has over 12,500 people employed in its Chinese facilities.
For its second-quarter, Dell managed to beat analysts' expectations with $23.45 billion in revenues. The company attributed its performance to increased corporate server demand and growth in its computer business.
