Dell Sets Its Sights On China

Beijing -- (AP) Dell Inc., the world's second-largest seller of personal computers, said Monday it had struck a deal to sell its PCs and notebooks through China's largest electronics retailer.

The deal with Gome Group, the parent company of Hong Kong-listed Gome Electrical Appliances Holding Ltd., will start with 50 Gome stores next month and expand to more stores in the first half of next year, Round Rock, Texas-based Dell said in a statement before the start of a joint news conference.

"For Dell, this is a great opportunity to extend connections with Chinese customers we have not reached in the past. We look forward to a long and mutually rewarding relationship with Gome," Michael Tatelman, vice president of marketing and sales for Dell's global consumer business, said in the statement.

He said the deal would include putting Dell employees in Gome stores.

Until now, Dell sales in China have been done by phone and the Internet.

Beijing-based Lenovo Group Ltd., which bought IBM Corp.'s PC business in 2005, and Hewlett-Packard Co., the world's biggest computer seller, have the biggest market share in China.

Dell has also announced similar retail sales deals with Wal-Mart Stores Inc. in the United States, Bic Camera Inc. in Japan and Carphone Warehouse PLC in Britain.

Posted by LS

Associated Press contributed to this report.