Dell Inc, which used to rely on phone and Internet sales, will sell its products in 3,000 partner retail stores in China by the end of this year, compared with 1,800 now, the world's No. 2 personal computer maker said yesterday in Shanghai.

Dell expected China, the second biggest income contribution region, to surpass the United States to become the No.1 regional market within 10 years, according to Amit Midha, Dell China's president.

"We have expanded into the retail sectors and have big clients like four telecommunications carriers and banks therefore Dell China will keep the high growth rate (despite the slowdown of the economy growth)," said Midha.

Dell has cooperated with top electronics chain store firms Gome and Suning to sell products in their stores. Through the cooperation, Dell's retail network will cover 1,200 cities in the Chinese mainland by the end of this year, compared with 90 now, Midha said.

In the first quarter, Dell China's revenue grew 46 percent year-on-year and its sales in China grew 59 percent, triple the industry average growth.

China's PC market sales will reach 42.8 million units in 2011 compared with 27 million last year, with an average annual growth of 13.2 percent, according to IDC, a US-based IT research firm.

Meanwhile, Dell announced it would launch a small-sized PC called Mini "within a few months" and the price would be "competitive" compared with similar products, said Andrew Lark, Dell's vice president.

At present, ASUS, Hewlett Packard and MSI have launched the so-called "EeePC" models, which provides users with wireless Internet access and basic functions. Lenovo also said it would release similar products priced from 2,999 yuan (US$441) to 3,999 yuan.

The Dell Mini will provide different models for consumers and business users, Lark said.

Dell's new model is expected to cost from US$299.

For developing countries, even US$300 to US$400 model is too expensive for most people. In the Western market, such models supplement the mainstream market and have limited market space, IDC said.

(Shanghai Daily July 23, 2008)