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Dell aims for 15% of computer market

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CIOL Bureau
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Dell Computer chairman Michael Dell said this week that he expects his company to eventually grab a 15 per cent share of the overall global computer market, currently $750 billion in sales value. Dell said his company’s share of the global market for computers and related product is about 4 per cent. By continuing to leverage its cost-effective direct sales business model, Dell believes his company will continue to outgrow the rest of the market, even to the point when the company could one day surpass IBM as the world’s largest computer maker. At 15 per cent, Dell’s sales would top $100 billion in today’s market. "I'd like to double or triple our market share from about 4 per cent now,'' said Dell.



Dell said his company is looking to broaden its geographic reach and expand its business in enterprise servers used for corporate and other computer networks. It also plans to boost its sales to consumers and small businesses as well as its services business, which has been doubling in sales every year.



Asked whether rival Compaq Computer's slump would ever end, Dell said Compaq's problems stemmed from its $10 billion purchase of Digital Equipment. "This complicated the business that they're managing to a level that nobody anticipated,'' Dell said, adding that Compaq's costs are more than that of Dell’s while they have the same basic gross profit margin. Compaq would have to cut its workforce in half in order to become as profitable as Dell, he added.

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