Dell strikes back at Lenovo

Dell has faced a challenge from rapidly expanding foreign competitors

Dell has announced that it is striking back at its Asian manufacturing rivals in their home markets. 

The world's number one PC vendor has faced a challenge from rapidly expanding foreign competitors, including China's Lenovo and Taiwan's Acer. 

Lenovo, however, is particularly reliant on its Chinese home market to support global expansion following its costly acquisition of IBM's loss-making PC division last year.

Lenovo controls more than 37 per cent of China's desktop PC market, compared to Dell's eight per cent, according to China-based research firm Analysys International. 

Dell's attempts to challenge Chinese companies on their home turf have met with a "very aggressive competitive response", according to Dell's chief financial officer James Schneider.

"I think we are quite comfortable that we are up for the challenge," Schneider said during a recent conference call.

"Our business has grown by almost 40 per cent, and profitability is very good in China. We believe that the Dell Direct model, when executed appropriately, can win in any market."

The US company's revenue in China was up 29 per cent in the first quarter, compared to the same period a year ago, Schneider told analysts during a conference call.

The 40 per cent growth in the number of products shipped was double the industry average, he claimed.