Dell eyes move into Chinese market

NEWS Dell is preparing to grab a larger share of the lucrative low-end PC market in China. Kevin Rollins, president and CEO at Dell, said he is ready to co-operate with Chinese authorities in Shanghai to discuss the development of a $300 PC. The news comes at an opportune moment for the company, just days before the computer vendor is set to release its Q2 results Analysts expect Dell's profits to be down compared to the same period last year, by almost a third. The company has previously shied away from the low margin domestic PC market leaving it to local players instead. However, Xu Kuangdi, Mayor of Shanghai, believes a cheap PC is needed to increase computer penetration. Currently only one in 10 homes has a PC and only one in 43 students. Dell already uses a Taiwan company to produce PCs for the Chinese market but Rollins hinted that he is ready to also collaborate with domestic companies.