Dell 2007 Annual Report Download - page 30

Table of Contents
7%. Average price per unit increased 4%, which reflects the mix of products sold and a benefit from the strengthening of the Euro
and British Pound against the U.S. dollar during Fiscal 2008, offset by our pricing strategy. The revenue growth was primarily a
result of higher demand for mobility products, represented by a 20% increase in revenue on a unit shipment increase of 24%. Growth
in services revenue also contributed to EMEA's strong Fiscal 2008 performance as EMEA's services revenue grew 30% year-over-
year. These increases were partially offset by a 3% decrease in desktop sales. At a country level, Poland, Austria, Greece, France, and
Germany experienced strong growth in Fiscal 2008. We recently reorganized our EMEA operations to focus our sales teams on
specific customer types, as opposed to our previous country focus, to reignite growth and provide more consistent offerings to our
customers.
In Fiscal 2007, the segment's performance was largely attributed to growth in mobility products, where year-over-year unit volumes
and revenue grew 29% and 15%, respectively, compared to 49% and 23%, respectively, in Fiscal 2006. This growth occurred
primarily in France and Germany in Fiscal 2007, with Germany leading the region's progress. The United Kingdom experienced
weak demand in its consumer business, resulting in a 2% year-over-year decline in revenue for Fiscal 2007. With the exception of
desktop PCs, all product categories in this region experienced growth for Fiscal 2007 compared to Fiscal 2006, with mobility,
storage, and services revenues posting strong gains.
• Asia Pacific-Japan — During Fiscal 2008, APJ's revenue continued to improve, with 15% revenue growth year-over-year. Consistent
with the EMEA segment, these increases were mainly a result of strong growth in mobility. Sales of mobility products increased 33%
year-over-year and unit volume increased 32% in Fiscal 2008. Sales of mobility products grew due to a shift in customer preference
from desktops to notebooks as well as the strong reception of our InspironTM and VostroTM notebooks. APJ also reported 20% growth
in servers and networking revenue on unit growth of 5% primarily due to our focus on delivering greater value within customer data
centers with our rack optimized server platforms, whose average selling prices are higher than our tower servers. These increases
were partially offset by a 10% decrease in services revenue. From a country perspective, India, Thailand, Taiwan, Malaysia, and
China experienced significant revenue growth during Fiscal 2008. Significant growth in India and China during Fiscal 2008
contributed to a revenue growth rate of approximately 27% for our targeted BRIC countries.
In Fiscal 2007, APJ reported 12% revenue growth on 20% unit growth. The region was led by 26% year-over-year revenue growth in
China during Fiscal 2007. Fiscal 2007's improved performance was partially offset by Japan's results, which saw revenue decline of
5% year-over-year. In Fiscal 2007, India, South Korea, Singapore, and Malaysia produced significant year-over-year revenue growth
at a higher rate than the overall region. All product categories in this region experienced revenue growth during Fiscal 2007 with
mobility leading the growth with a revenue increase of 12% on unit growth of 31% during Fiscal 2007. Also driving this growth were
increases in services, software and peripherals, and storage.
For additional information regarding our reportable segments, see Note 11 of Notes to Consolidated Financial Statements included in
"Part II — Item 8 — Financial Statements and Supplementary Data."
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