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Loading ...Dell Chairman and Chief Executive Michael Dell said Tuesday that Microsoft’s Windows Vista operating system will help boost demand for dynamic random access memory (DRAM) chips although chip manufacturers such as Samsung Electronics and Hynix Semiconductor have been losing from their memory chip business.
“Thanks to the increasing use of Windows Vista, demand for computer chips has been growing quite fast,’’ Dell told a press conference at a Seoul hotel Tuesday.
“Industry leaders should make proper investments to maintain their positions, especially at a time of difficult situations,’’ he said by emphasizing such a business follows cycles.
He added that the global chip market sees rising demand for high-capacity memory chips over 2GB and painted a rosy outlook for flash memory chips, citing reviving consumer demand for high-end laptops equipped with pricey solid-state drives.
DRAMs are widely used in personal computers. Dell is the world’s second-biggest personal computer maker and buys computer chips from Samsung and Hynix, the world’s No. 1 and No. 2 DRAM suppliers.
Experts say Dell’s remarks run counter to a general market analysis that the introduction of Windows Vista has caused chipmakers to boost chip production, resulting in oversupply and steep price drops.
Dell met Hwang Chang-gyu, president of Samsung Electronics Semiconductors, Kim Jong-kap, president of Hynix, and Kwon Young-soo, CEO of LG Display, to discuss expanding business partnerships.
“He had business meetings with them for the first time in four years but we cannot reveal the details,’’ a high-ranking official from Dell’s South Korean branch told The Korea Times.
On the question of the possibility of acquiring Motorola’s struggling handset division, the Dell chairman declined to comment by simply saying his company is now focusing on its PC business.
“Our business in Asia-Pacific and Japan grew by 41 percent and we expect to continue to grow faster than the industry average,’’ he said.
“The global PC market will see a consolidation soon considering the ongoing M&A moves between bigger PC makers,’’ Dell said, advising Samsung Electronics and LG Electronics to respond to the trend with distinctive strategies.
“Over the past six months, we have sealed an official partnership with 15 larger retailers in South Korea including HiMart,’’ he said, adding that his company is positive about striking more deals with local retailers.
“We have seen significant growth in our PC sales in recent years here,’’ he said.
Dell sells PCs at retail shops and supplies commercial computers to South Korean companies.
Dell, which sees the Asia-Pacific region as its next growth engine, reported a 77 percent sales gain in India and 54 percent in China last year.
From 2007, the company dropped its long-standing direct-only sales model and started selling PCs in stores such as Wal-Mart and Best Buy in North America to better compete with its biggest rival Hewlett-Packard.
“But we will keep the direct sales portion, as well, in global market including South Korea’’.
Source: koreatimes
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