Dell plans to spend $25b a year in China over next decade

Dell (DELL.NASDAQ, 4331.HK), the US computer manufacturer, plans to boost investment in China to more than US$25 billion a year over the next decade to expand delivery of information technology services, the South China Morning Post reported. The pledge, made by Stephen Schuckenbrock, global president for large enterprise business at Dell, tops a previous commitment to spend more than US$100 billion over the next 10 years on facilities, employment, research and development and purchases from suppliers. Schuckenbrock said the new figure includes “all the procurement and manufacturing that we do here to support [operations in] the rest of the world.” Dell was mainland China’s second-largest PC supplier in the second quarter of 2010, behind Lenovo Group (0992.HK). It spent US$23 billion last year on domestic sourcing of computer components and other related products, up from US$18 billion in 2007. Market research firm IDC forecasts that mainland China PC shipments will reach 97 million units in 2012, surpassing the 93 million units expected in the US.