Dell to expand component orders from China to cut costs

Dell to expand component orders from China to cut costs

Dell has revealed that they are now going to expand their component orders from China.

The company aims to buy $23 billion of components from China this year and $29 billion in 2009.

The aim is to cut costs in manufacturing of their products as they face massive competition in their domestic market of USA.

Dell CEO Michael Dell spoke about China’s importance: “China is critical to Dell’s global supply chain. Dell will purchase $70 billion of computer-related supplies and equipment from China.”

They are not alone. Several other US based giants including Cisco Systems is increasing their purchases from this market.