Filed under: Competitive strategy, Dell (DELL), Wal-Mart (WMT), China
Dell (NASDAQ: DELL) is going to spend a boat-load of money in China this year. According to Reuters, the massive Personal computer company will spend $23 billion on components from the large Asian country up 28% from last year.
The question is, does Dell have to buy every one of those parts in China, or would it like the government and consumers there to think the firm is “China friendly”?
A number of companies doing huge amounts of business in China, like Wal-Mart (NYSE: WMT) also buy a significant amount of their products there.
What Dell does not talk about, at least when it is in China, is how much of its component budget goes to Taiwan, either directly or though the purchase of chips, which are wholesaled from there by firms that supply the Personal computer company with processors.
Why offend the Chinese? Taiwan isn’t a very massive Personal computer market.
Douglas A. McIntyre is an editor at 247wallst.com.
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