Dell (DELL) Buys More Parts In China, Flatters The Locals

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Dell (DELL) announced that it will buy $23 billion of components in China this year, up 28% from last year. None other than Michael Dell himself said "China is one of the most dynamic and fastest-growing economies in the world, and we’ve made significant business and social investments here in the last 10 years," according to Reuters.

Is Mr. Dell buying parts or selling PCs? China is a critical market for the computer company as it battles for global market share against Hewlett-Packard (HPQ), Apple (AAPL), Lenovo, and Acer. Talking up what Dell does for China may help China do for Dell. Dell’s sales are not keeping up with those of most of its competition.

It is interesting that Mr. Dell avoids talking about the business he gives to Taiwan, especially though buying chips which semiconductor companies build there.

But, the Sons of Mao would not like that, so Mr. Dell has avoided the subject.

Douglas A. McIntyre

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