Dell "No Longer a PC Company" as It Focuses on Enterprise
February 27, 2012 2:07 PM
comment(s) - last by
Dell will still devote energy to its XPS lineup
Dell, a company that rose to prominence on direct sales to customers, lean operations, and competitive prices is moving its focus away from the PC market. According to
, this revelation comes courtesy of Brad Anderson, Dell Solutions Group President.
"We're no longer a PC company, we're an IT company," said Anderson. "It's no longer about shiny boxes, it's about IT solutions [that let companies drive efficiencies]."
killed off its netbook lineup
in late 2011.
Dell experienced record growth in its enterprise solutions and services divisions with $18.6 billion in revenue for fiscal 2012 ($4.9 billion for Q4). Revenue from its consumer unit dropped 2 percent for Q4 to $3.2 billion.
also reports that enterprise solutions represent 50 percent of Dell's profits.
Not surprisingly, the signs that a move away from PCs was right there in the company's earnings report. “Our customers think of Dell in much broader terms now, trusting us with their comprehensive IT needs, from the datacenter to the device,” said CEO Michael Dell last week. “The expanding mix of revenue and earnings from enterprise solutions and services is critical to our future."
According to Anderson, Dell will still devote energy to its XPS family of PCs that have been successful for the company.
Rival Hewlett Packard
pondered such a move last year
, but new CEO Meg Whitman
decided against tossing asides its PC unit
. "HP objectively evaluated the strategic, financial and operational impact of spinning off Personal Systems Group (PSG)," said Whitman in late October. “It’s clear after our analysis that keeping PSG within HP is right for customers and partners, right for shareholders, and right for employees. HP is committed to PSG, and together we are stronger."
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RE: Apple rakes in the profits . . .
2/27/2012 2:36:36 PM
Interesting though that many analysts are trying to lump iPad sales in with Mac notebooks sales to create a PC/tablet two-headed monster.
Take that into consideration and Apple is at 26% of the market:
I don't know if that's quite fair though...
RE: Apple rakes in the profits . . .
2/27/2012 6:20:28 PM
It can be fair
you're consistent with your definitions. If Apple has 26% of the mobile market (counting tablets and laptops together), then iOS only holds only 21% of the mobile OS market (making it a distant, distant second to Windows).
Or you can say Apple has 8.3% of the mobile PC market (counting only laptops), and iOS has 59% of the tablet market.
What's unfair is using one definition of "mobile" when talking about market share, then using a different definition when talking about OS share. You can't say Apple holds 26% of the mobile market (counting PCs and tablets together) and 59% of the mobile OS market (counting only tablets). That's just inconsistent, if not outright deceptive.
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