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Dell revealed plans to buy a large amount of computer components from Chinese manufactures which will reduce the manufacturing cost of their products as their main market, United States is facing recession.
Dell founder Michael Dell said that China plays a very important part in their company global supply as Chinese manufacturers offer good quality components for cheap price which makes it a favorable place to buy components from. Dell also said that they will purchase components worth $23 billion this year and $29 billion in 2009 and will spend a total of $70 billion over the period of 2007-2009.
Dell is not the only company which is looking forward for cheap components, HP and Cisco are also looking forward for these as it is said that major hardware manufacturers whom major income is United States, will be hit by the country economy slowdown.
Cisco, the biggest manufacturer of networking equipments such as routers, switches etc is expected to double its demand for components to a tune of $16 billion from present Chinese manufactures in next five years.
Dell is feared to be most badly hit by the US slowdown as it contributes more than half of its revenue.