With their own market in recession US online retailer Dell plans to buy $70 billion of components from China during the next 2 years. The deals come as the Company fights to deliver bottom line profits ahead of arch competitors like HP.
According to Reuters the commoditisation of computer hardware means competition is more a function of price and efficiency than quality and branding, making China a favourite place to source a broad range of goods, including electronic components.
"China is critical to Dell's global supply chain," founder and Chief Executive Michael Dell said.
"Dell will purchase $70 billion of computer-related supplies and equipment from China," he said, referring to total purchases over the 2007-2009 periods.
The world's second-largest personal computer maker, Dell is far from alone in looking to China to reduce manufacturing costs and remain competitive.
