(AFP) The world computer industry is facing a "challenging time" but can expect a recovery in demand next year, the founder of Dell Computer Corporation said today.

Michael Dell also said layoffs announced yesterday among Dell's US staff would not be mirrored in Asia.

"Our industry is right now facing a challenging time," he told a press conference during a two-day visit to Malaysia.

"But I believe there will be a significant refresher technology starting around the later part of this year and moving to early next year, particularly with the introduction of more low-cost desktop computers which will drive active replacement cycles for many corporations," he added.

"Nothing has a bigger impact than IT. The spending (to acquire new computers) will continue."

The company announced yesterday it was laying off 3,000 to 4,000 workers in the United States, mostly from its central Texas plants.

"The US market has slowed considerably," Dell said.

Number one

The computer maker also announced it would meet predictions of US$8 billion in revenues and 17 cents per share in earnings when first-quarter results are announced.

Dell, the corporation's chairman and chief executive officer, said that despite the economic slowdown it had increased its market share in the last six months.

He attributed its success to its involvement in Asia, its focus on high-end products, such as servers, and its unique direct business model.

Asked whether the US layoffs would be mirrored in Asia, he replied: "The reduction in the (US) workforce will have no effect on our operations in Malaysia and in Asia."

Dell is the number one computer maker in Malaysia.

"Our operations in Malaysia are doing well. Our operations in Asia are profitable," Dell said.

Outlining his company's strategy to remain at the top, Dell said it would continue to focus production on mobile computers, servers and storage capacity.

"All our resources are going into that area," he said.