Dell's competitors, including Lenovo and HP, have all been building a nationwide retail network and have a fast-expanding retail team.

"I think Dell may have some internal debates about its direct sales model but they will not make it public, since any wavering on that established model will affect the company's current customers," Ye said.

But changes may already have been set in motion.

In March, Dell kicked off its first Chinese-language company blog to get closer to its consumers. CEO Michael Dell announced the same month the debut of a low-cost PC priced at 2,599 yuan, aimed at rural consumers.

The most remarkable change, however, has been Dell's rapid opening of user experience centers, where customers can touch and feel Dell's products before making a purchase decision (though users still can't buy products directly from these centers).

The company plans to open two to three centers in different cities in the following quarter, and they will not be located "only in China's big cities".

"The direct sales model has been a revolution, but is not a religion," said Michael Dell in a memo to employees last month. "We'll continue to improve our business model, and go beyond it, to give our customers what they really need."

(China Daily 05/23/2007 page15)