TAIPEI, TAIWAN: Dell, maker of the world's No. 2 PC brand, said on Friday it hopes to see revenue grow on an annual basis from 2010, driven by increasing demand from China and India.

"China appears to be emerging fastest out of the financial crisis," Steve Felice, Dell's president for small and medium business, told reporters on a conference call. "India appears to be coming out as well."

The firm's revenue in Asia fell 21 percent from a year ago in the second quarter, as consumers and companies pull back on their IT spending amid the global economic slowdown.

In China, Felice said the company is considering expanding its reach outside of the top tier cities such as Beijing and Shanghai to help it grow in the world's second-largest PC market after the United States.

"We don't have a very big presence in the rural communities," Felice said. "Our focus has been in the top-tier cities, and we're in the process of expanding our reach, but we want to do it profitably and we want to make sure we're doing it in a prudent manner."

Lenovo has been among the biggest beneficiaries of China's move to encourage domestic spending, with more than half of all PCs sold under a stimulus package to boost the purchase of electronics in rural communities carrying its brand name.

In contrast, global rivals such as HP, Acer and Dell took less than 1 percent each, according to Chinese government figures.

Dell has been betting on a strong replacement cycle from 2010, helped by Microsoft's next-generation Windows 7 operating system, to help pull it out of the current slowdown.

It reported better-than-expected quarterly profit on Thursday, largely on the back of effective cost cuts and price protection, helping its gross profit margin.

Dell is the second PC firm after Acer to see stronger-than-expected profit margins. On Thursday, Acer also reported gross margins that exceeded most expectations, helping boost its share price on Friday.