Zacks.com Analyst Blog features: Dell Inc. (Nasdaq: DELL), Hewlett-Packard Co. (NYSE: HPQ), Apple Inc. (Nasdaq: AAPL), International Business Machines Corp. (NYSE: IBM) and Microsoft Corp. (Nasdaq: MSFT).
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Here are highlights from Monday's Analyst Blog:
Dell Grows Building BRICs
Dell Inc. (Nasdaq: DELL) has started construction of its second operating unit in China, which is in line with its expansion plan initiated in September 2010.
Per the plan, Dell will open a manufacturing and customer support center in Chengdu,Western China. Dell expects the unit to be operational by fiscal 2011, creating 3000 job openings.
Along with Chengdu, Dell plans to open an additional office in Xiamen, situated in southeastern China. This proposed expansion will add 500 employees to the Dell family. Dell had its first operating unit in Xiamen.
According to Dell, the overall China expansion will cost more than $100 billion over the next 10 years on facilities, employment, research and development, as well as purchases from Chinese suppliers. We believe this massive capital expenditure reflects Dell's confidence in the region, boosted by a string of successes there.
Dell China has recorded solid revenue growth of almost 11 times over the past decade. In the recently-reported fourth quarter, sales in China grew 21% year over year. According to the industry analyst firm IDC, demand for computer systems in western China will grow at a 21% annual rate through 2014. With a talented workforce and well-planned execution, we believe that Dell will be able to capitalize on the emerging opportunities in China.
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