Dell promises to expand its NZ operations

By PETER GRIFFIN IT writer

US computer maker Dell is promising to expand its local operations next year after being outsold by local PC maker The PC Company this year.

New Dell managing director for Australia and New Zealand, Texan David Miller, said the world's top computer maker would invest more money on boosting its presence in New Zealand, concentrating on sales and technical support.

Unlike its main PC maker rival Hewlett-Packard, which employs about 550 people and has an extensive IT services arm, Dell has just "handfuls" of people on the ground in New Zealand, an aspect of the famous direct-to-customer approach allowing Dell to undercut its competitors on price.

Dell's technical support is outsourced to Unisys and contractors are used extensively.

Traditionally the company's strength lies in winning large tenders in the government and corporate sectors. But a new emphasis has come this year on the home and small business markets with extensive print and TV advertising. Despite that, Dell a high flyer in larger markets, is struggling to hold on to market share in New Zealand.

In the three months to June 30, Dell sold about 6500 PCs, according to analyst group IDC, giving it a 6.9 per cent share of PC unit shipments, behind the PC Company's 7000 units. In the three months to September 30 it had regained third place behind Hewlett-Packard and IBM, but slipped into fourth place in Intel server sales and dropped out of the top four in the notebook market.