Dell bets big on developing economies

Tags: Dell, News
New Delhi, Feb 22 (PTI) Unperturbed by 18 per cent fall in net profit

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in the fourth quarter in its global operations, computer maker Dell is betting big on developing economies like India and China to fuel its growth going ahead.

"India continues to be among our strategic, fast-growing markets, we expect to see a strong growth across segments," Dell Asia-Pacific and Japan President Amit Midha told PTI.

"We expect to see a strong growth momentum for our enterprise portfolio with servers, storage, infrastructure and managed services for the large as well as medium-sized customers as well as continued growth in the consumer segment," Midha added

Dell India's revenue grew three per cent for the fourth quarter of FY 2012 (November, 2011-January, 2012), while for the entire fiscal (February, 2011-January, 2012), it grew 13 per cent.

Globally, Dell reported a decline of 18 per cent in net income to $ 764 million for the fourth quarter of FY 2012 from $ 927 million in the same period last year, impacted by shortage of hard disk drives and weak demand in public segment in the US and Western Europe.

Public segment revenue slipped one per cent y-o-y at $ 3.9 billion.

Revenues in the public segment for the Asia Pacific Japan (APJ) region grew 16 per cent year-on-year. India registered 28 per cent increase in revenue in this segment.

Revenues in the APJ region in Q4 stood at $ 3.2 billion, up 10 per cent y-o-y. Revenue for FY'12 was $ 12.7 billion, a 13 per cent increase over last year.

China, second in revenue to the US, grew revenue 15 per cent in the quarter and 20 per cent for the fiscal year.

Revenues from the Americas region was down 3 per cent. The company said revenue from growth countries, described as those outside the US, Canada, Western Europe and Japan, increased 8 per cent in the quarter and 12 per cent for FY'12.

Revenue from BRIC countries (Brazil, Russia, India and China) increased 10 per cent in the quarter and 15 per cent for the fiscal year.

Midha said Dell remains a leader in the personal computing space, adding that the company has also improved its market share for servers and storage segment.

Korea led Large enterprises segment revenue with 28 per cent growth, while that from India grew by 20 per cent.

Dell's global revenue increased two per cent in Q4 FY'12 at $ 16.03 billion from $ 15.69 billion in the fourth quarter of 2011.

On full-year basis, net income grew 33 per cent to $ 3.49 billion, while revenues were flat (one per cent) at $ 62.07 billion in FY'12.

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