Dell experiencing faster sales outside US

BEIJING, CHINA: Dell Inc, the world's No. 2 personal computer maker, said on Friday that sales outside the United States were growing much faster than its home market and could account for two-thirds of total revenues within five years.

Revenue from international regions topped US revenue for the first time, with Brazil, Russia, India and China (BRIC) leading the way with 73 per cent shipment growth in the first quarter, Steve Felice, president of Dell Asia-Pacific and Japan, told reporters during a teleconference.

At the rate things are going "two-thirds could come in five years," said Felice, referring to sales from outside the US.

The comments came after Dell posted higher-than-expected quarterly profit, driven by cost cuts and strong demand from consumers and foreign markets, pushing its shares up nearly 10 per cent in after-hours trade.

Dell pointed to the strong performance as evidence that a year-long turnaround led by founder Michael Dell, who returned to the chief executive post in January 2007, was yielding results.

However, Dell said US corporate customers were still cautious about buying given the uncertain economic outlook.

The firm's Americas revenue rose 1 per cent in the quarter ended May 2, although server unit shipments soared 20 per cent, four times that of the industry.

Dell has announced a plan to cut 8,900 jobs to reduce costs, but said Asia -- with faster sales growth and a large part of the company's supply chain -- would see more job growth.

"You will continue to see continued head-count growth in Asia," he said.

In March, the company said it would buy $23 billion of components from China this year and $29 billion in 2009, rising from $18 billion last year to help reduce costs.