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Dell Aims to Stay Ahead of HP in China Computer Sales

Nov. 4 (Bloomberg) -- Dell Inc., which overtook bigger rival Hewlett-Packard Co. in China’s personal-computer market this year, said it aims to remain ahead on demand from corporate clients.

“We aspire to continue to grow successfully here,” Steve Schuckenbrock, president of the company’s large enterprise division, told reporters at a briefing in Hong Kong today.

The Round Rock, Texas-based company beat Hewlett-Packard, the world’s biggest PC maker, to take second position in China, behind only Lenovo Group Ltd., in the second quarter, according to research company IDC. Dell is winning sales at clients including Wal-Mart Stores Inc.’s China division, and expanding its distribution network in smaller cities.

In addition to sales of PCs, Dell aims to increase revenue from computer services, said Alex Yung, a vice-president in the China division. Dell last year bought Perot Systems Corp., acquiring assets including BearingPoint Inc.’s consulting practice in China, to challenge International Business Machines Corp. and Hewlett-Packard in the computer-services market.

Liana Teo, a Singapore-based spokeswoman at Hewlett-Packard, didn’t immediately reply to messages left on her e-mail, office and mobile phones seeking comment.

Dell plans to build two data centers in China, and expand its production and operations center in the western city of Chengdu, Schuckenbrock said. Spending in China, Dell’s second-biggest market, will exceed $100 billion over the next 10 years, the company said in September.

Hewlett-Packard accounted for 8.2 percent of China’s PC shipments in the second quarter, compared with Dell’s 9 percent, according to IDC. Lenovo, China’s biggest PC maker, increased its market share to 28.7 percent, IDC said.

Globally, Dell ranks third in PC shipments behind Hewlett-Packard and Taiwan’s Acer Inc., according to IDC.

To contact the reporter on this story: Mark Lee in Hong Kong at wlee37@bloomberg.net

To contact the editor responsible for this story: Young-Sam Cho at ycho2@bloomberg.net

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