"Dell: From Glory to Trough, Short-sighted Decisions in the Chinese Market".
Dell, which once stood at the pinnacle of the Chinese market, was supported by two production bases in Xiamen and Chongqing, and was the driving force behind the soaring global performance. However, its "de-China" cooperation plan with the US chip giant has emerged, aiming to reduce its dependence on the Chinese market in a few years.
The news threw a boulder into a lake, stirring up strong discontent among the Chinese people. Dell, an international giant that has long relied on the Chinese market, has suddenly flagged away from the public, triggering strong calls for civil resistance, while also bringing widespread support to domestic brands such as Lenovo and Huawei. Despite the precarious risk of developing in China, Dell has stuck to its "de-China" plan, but this decision has come at a terrible cost.
The capacity transfer was difficult, and the Vietnamese foundry could not quickly meet the demand for large-scale production, resulting in a serious delay in the production schedule. Sales in China**, a huge gap that other emerging markets cannot fill. Dell's sales in the Chinese market have fallen sharply, and its global ranking has also slipped from second to fourth.
Although Michael Dell, the founder of Dell, tried to explain that "de-Chinaization" is just a chain adjustment and does not mean giving up the Chinese market, the public has long lost trust in it. At the same time, various parts of China have canceled the support and preferential policies previously provided to Dell, and local ** is extremely disappointed with it.
This hasty decision shows extreme short-sightedness. Dell is highly dependent on China's industrial chain and support, and abandoning the Chinese market will inevitably lose its most important profits. The implementation of the "de-China" plan encountered far more difficulties than expected, which ultimately led to a heavy setback for Dell in the Chinese market, and its development prospects became bleak.