Business

Asian purchase
by Claudia Sonea

Who would have thought Asia would one day support US? Well maybe is too much to say that right now, but generally American companies see their revenues saved by the sales in Asia. In the context of an imminent economy recession, most of the US top corporations manage to survive the crisis due to their business abroad. I don’t expect you to believe me without giving you some real life example. Therefore, let us take a look at Dell Inc, the world's No. 2 personal computer maker. They just made public their first quarter fiscal revenue of $16 billion that represents a 9 percent record increase. The Asian demand for commercial and consumer products and services increased at such a fast pace that Steve Felice, president of Dell Asia-Pacific and Japan, forecasted foreign sales to account for two-thirds of total revenues in the next five years. Brazil, Russia, India and China were the countries with the highest growth in demand and shipment. Dell appreciated the result of being mostly the achievement of founder Michael Dell who was reinstated chief executive at the beginning of 2007. However, these great results won’t prevent the firing of 8,900 employees in order to reduce costs. The cutting will take place only in US where the market is pretty shake anyway, but in Asia it might grow. Furthermore, they officially announced an increase in the purchase of components from China as it is cheaper than on the American market. Asia saves the US companies, but dooms the market. If US firms will turn to other countries in order to reduce cost, what will be left for US residents? Many manufacturers will be left out of demand, while people will lose their job. Is this really the outcome desired?

related story: http://news.yahoo.com/s/nm/20080530/tc_nm/dell_outlook_dc;_ylt=AheRhtcdkH5PL7LiVirQsRWs0NUE

by Claudia Sonea for PocketNews (http://pocketnews.tv)

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posted by Blog TechSource @ 4:37 AM