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Dell Will Hire in China and India, Expand in Asia (Update2)

By Andrea Tan and Paul Gordon

Nov. 30 (Bloomberg) -- Dell Inc., the world's second-largest maker of personal computers, will hire sales and customer-service workers in China and India amid an expansion in Asia as expanding economies spur consumer spending.

``We want to grow our presence in the retail stores and on our own,'' Steve Felice, president of Dell's Asia operations, said in an interview in Singapore today. ``We're adding headcount in China and India,'' he said, declining to provide a number.

Dell seeks to expand Asia's 14 percent contribution to its revenue to cope with falling demand in the U.S. and to catch up with larger rival Hewlett-Packard Co. Round Rock, Texas-based Dell's sales in Asia rose 18 percent in the fiscal third quarter ended Nov. 2, while Hewlett-Packard's gained 20 percent in the most recent three-month period. The region accounts for 17 percent of Hewlett-Packard's sales.

Dell was Asia's third-largest computer seller, with an 8.8 percent share, in the third quarter, behind Hewlett-Packard and Lenovo Group Ltd., according to researcher IDC.

``We've gained share in every emerging market,'' Felice said, without specifying figures. ``There're growth opportunities in consumers and small, medium enterprises.''

The company's sales growth in Asia, led by China and India, is more than double the 7 percent increase in the Americas, it said in a statement.

Dell in October started selling computers in 50 stores in China operated by Gome Electrical Appliances Holdings Ltd., following similar agreements in the U.S., Japan and Europe.

Dell plans to expand its presence to 1,000 cities in China from 45 at present, Felice said on a conference call, without specifying a time-frame.

China's economy expanded 11.5 percent in the third quarter, making it the world's fastest-growing major country, while first- half disposable incomes of urban Chinese jumped 18 percent, according to government data. India's economy grew 8.7 percent in the three-month period.

Dell has an ``increased appetite'' for acquisitions and will continue searching for targets, Felice said, without identifying any company.

To contact the reporter on this story: Andrea Tan in Singapore at atan17@bloomberg.net

Last Updated: November 30, 2007 00:43 EST

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