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Dell founder Michael Dell has said that his firm would focus on India and China to become the number one PC maker in the world. Michael Dell had taken over as the company’s CEO after the firm was pushed behind by Hewlett Packard, which is now the number one PC maker in the world. Since he took over, the sales of Dell PCs have touched 19 per cent from 11 per cent. The turnaround strategy charted by Michael Dell involves tapping first time users in developing markets. The company is also planning to sell its computers through stores by changing the traditional model of delivering on orders. Michael Dell added that the company would also be focusing more on design rather than stressing on utility alone.

PC maker Dell plans to launch low-cost desktops for the Indian market in the second week of April. Dell will purchase $23 billion computer related components from China this year. The company had announced to purchase about $ 70 billion of computer supplies and equipment from China in 2007-2009. This strategy will help Dell to reduce the price of the desktop manufactured at the Chennai plant.

Mr Rajan Anandan, vice- president and general manager, Dell India said that the company is targeting one of the high growth markets for the low-cost product. This product will be manufactured in our Chennai plant. This will be a customised product for the Indian market. But however, he refused to reveal the price of the product or the targeted market size.

The ultra low-cost PC, which was targeted by the government at Rs 10,000, failed to take off after the HCL easy PC was launched on the Linux platform. The sub 10,000 PC failed to operate on Microsoft Windows platform. The manufacturers could not afford desktop PC on Windows platform at the targeted price. With the price gap between the desktop and notebook decreasing, manufacturers are targeting to bring in low cost PCs to boost the desktop sales. Currently, the company’s manufacturing plant in India manufactures four lakh units per annum.