Turns Its Back on Chinese Chips? Dell’s ¥ Billion Order Canceled for Underestimating the Cost!

Dell’s decision to stop using Chinese chips has proven to be a regrettable move. For two decades, Dell’s success as a top PC manufacturer relied heavily on the support of the Chinese market. However, the company abruptly severed its ties with China when the United States implemented chip controls on the country. Dell announced its plan to completely eliminate Chinese chips by 2024, relocate half of its production capacity out of China by 2025, and detach from the Chinese supply chain entirely by 2027. This decision sparked strong discontent among Chinese consumers, leading many to declare that they would no longer consider buying Dell products. Unfortunately for Dell, the process of “de-Dell-ization“ had already begun in the Chinese market before their decoupling plan could take effect. As a result, Dell’s shipment volumes and market share in China have been halved, and its revenue has plummeted by 63.5 billion yuan. Chinese companies like Huawei have capitalized on Dell’s decline, with Huawei surpassing Dell in market share and reclaiming a top-three position in the domestic market. Dell now faces the challenge of trying to regain its lost market share in China. However, the decline in revenue has put them in a difficult position, and it seems too late for them to reverse their decision. The accumulated market share they once enjoyed in China has been quickly taken over by Chinese competitors, leaving Dell with significant troubles to overcome. “China Focus“ is a YouTube channel created to provide current events and pop culture headlines from you can get to know a more real China through my video. ｜ #ChineseNews #chips #ChinaFocus Thanks for your watching and subscribing.