Dell Inc. (NDAQ: DELL) shares surged higher today on stronger than expected earnings. The PC-maker announced sales of $16.1 billion, which exceeded analyst estimates of $15.7 billion. Revenues in Asia jumped 19% as overseas sales finally topped those in the U.S. for the first time. The only unit that didn't see an advance in sales was the desktop PC market, which continues to struggle.

Michael Dell has attributed the gain to a new turnaround fueled by a retail-driven sales strategy. The company has added 13,000 retail outlets in the world's 20 largest economies over the past year to help it expand beyond the United States. Dell abandoned its strategy of selling only over the phone and internet, which led to its recent recapture of market share from competitor Hewlett Packard.

Dell is also targeted developing countries with cheaper machines. The PC maker is aggressively entering these markets with lower-priced products, which is driving the company's average price down but increasing its overall revenues. The effect on the bottom-line may be somewhat negative, but it appears to be a trade off that many investors are willing to accept.

Finally, Dell has also taken many cost-cutting measures. The company cut 1,000 jobs in the first quarter and plans to trim its expenses by $3 billion annually over the next three years. This will be accomplished through a combination of workforce reductions and a move to lower-cost manufacturers.

"We still have much work to do to restore our competitive position," said Dell on a conference call. "I am encouraged by the acceleration in our growth - you will see much more."

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