economy - Dell is up, Lenovo is down

Computermaker Dell is nearing the domestic top-league in China, write Engaging China in this summery of the recent developments of the computer market. Dell went up 30 percent in sales over 2006 and might build another factory, while Lenovo is losing steam.

In China, Dell is the fastest-growing player and in less than a decade it has grown to be third-largest PC vendor with a 10% share, behind home-grown Lenovo, which has more than a third of the domestic market, and Founder Technology.

That goes very much against what I expected earlier this month, based on what I thought was a pretty concinvinc story by Silicon Hutong. The story was that Dell abandoned in China the business model that made it big in the US: making good computers for a as low as possible price, based on strong logistics. Clearly a story that needs more attention.