Dell reaps the consequences of its own misfortune, and the market counterattacks and refuses to use Chinese chips
At the end of 2022, when Dell announced that it would stop chips in China and move 50% of its production capacity out of China, the outside world immediately slapped the company in the face because of the sharp decline in shipments, which made Dell the PC manufacturer with the worst decline in sales
According to analysts, Dell was the world's top three PC manufacturers in the fourth quarter of this year. Dell's shipments for the quarter were down 37% from the same period last year to 10,800,000 unitsLenovo and HP sales fell 29% to 15.5 million units, and sales fell 13.2 million units.
And this time, Dell is in trouble, HP sold 13.5 million units in the second quarter of 2022, and Dell sold 13.2 million units, only 300,000 units short, when the industry was still crying, saying that Dell was close to surpassing HP to become the world's second largest PC company;By comparison, in the fourth quarter of 2022, the difference in shipments between the two reached 2.3 million units.
Dell's decline in shipments was even more severe, perhaps due to the strong recovery in China. According to the figures for the third quarter of this year, Dell China's shipments have declined, and the figures for the first quarter show that China's three major PC manufacturers, Lenovo, Dell, and HP, have seen their sales fall by 16 percent7%,21.4%, HP, Dell in the fourth quarter of this year China will be hit harder, and China's recovery has caused huge losses for Dell in the world.
Dell's PC sales have been steadily rising, compared with the sales of Lenovo and HP, which ranked first, Dell has put more pressure on Lenovo and HP, and the company, which had a good performance, suddenly announced that it would abandon Chinese chips and transfer production capacity abroad, which is enough to prove how important Chinese semiconductors and Chinese products are. Chinese chips, Chinese products, are very important.
At present, China's call for "Made in China" is increasing, and the localization of domestic chips has exceeded 30%, which directly affects China's chip imports, and in 111 months of 2022, China's integrated circuit imports decreased by $84 billion year-on-year, and there is an accelerated decline.
Now, whether at home or overseas, Chinese chips can be used. U.S. home appliance makers say they are interested in Chinese chips because they are cheaper, and some Chinese say, their chips perform the same as those in the U.S., but are lower than those in the U.S.1 4. In order for U.S. home appliance manufacturers to continue to use Chinese chips, U.S. home appliance manufacturers have been forced to revise the relevant regulations.
Chinese production, far stronger than Dell, Apple once said, there is no Chinese production, Apple CEO Cook said in an interview, Apple must be produced in China, for a long time, China's production is not cheap, but China's technology is the most important. Cook said it would be difficult to get a table in the United States, and that China could quickly recruit a large number of high-tech personnel, and that the Chinese had a complete chain, which Apple desperately needed.
However, Dell publicly announced that it would abandon China's chips and move 50% of its production capacity outside of China, and the market reacted quickly, resulting in Dell's PC sales from a steady and rapid decline to a serious decline, and the decline was even faster than in the first quarter, it turned out that Dell's sales strategy did not follow the current trend, with sales down 6% and net profit down 90%, indicating that Dell's products were the best.
If you don't use Chinese chips, the cost of Dell PCs will rise, market competitiveness will decline, and performance will decline, so to speak, Dell is a person who reverses the market, in this case, what else does Dell have to say?Perhaps, they can learn something from Apple and understand how important production in China is to them.