Michael Dell, CEO and founder of one of the world’s largest PC companies, expects that the Chinese market will remain hot, according to quotes attributed to him by Reuters. “We are bullish on markets like China, India, Brazil,” the chief executive of Dell (NASDAQ: DELL) said. His optimism about emerging markets may be misplaced. Ample evidence suggests that traditional growth rates in these countries has slowed, and slowed considerably.
At the same time, more consumers have turned to smartphones and tablets for computing needs. Growth challenges and new technology have battered Dell, which has been unable to lift earnings partly because it has no smartphone products. Emerging markets, which do not hold the promise that they did before the recession, will not cure the lack of Dell products.
Douglas A. McIntyre