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  (Source: TechSpins)
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 PC Pro, 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]."

The company 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.
 
PC Pro 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."

Sources: PC Pro, Dell Earnings



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RE: Apple rakes in the profits . . .
By Tony Swash on 2/27/2012 3:26:15 PM , Rating: -1
quote:
In that sense, you can certainly say that Apple has higher revenues/profits than Microsoft, but you could also make a fair argument that Microsoft has greater market influence than Apple.


So Microsoft has greater market influence but can't make more money - which is after all the basic reason businesses operate.

Windows position reminds me of Symbian just a few years ago.

One can argue about all this stuff for ever but it seems fairly indisputable to me that the desktop PC world and all that goes along with it is less and less important in terms of driving the direction or dynamic of computing technology and is certainly a minority device (and a shrinking minority) in terms of what computing devices people actually use to do stuff. Meanwhile even in the desktop market PC makers struggle to make a profit and Windows sales actually shrink. Something big is happening.


RE: Apple rakes in the profits . . .
By apinkel on 2/27/2012 4:07:42 PM , Rating: 5
I would say that's very disputable.

I work in a large company and I know of only one person out of approximately 300 people in my area who uses an apple product for real work.

There are lots of iphones/ipads used by folks to keep on top of email/calendar after hours but everday work is done in word and excel, documents are shared via sharepoint, emails are sent via outlook/exchange to our business partners who also almost exclusively use office, windows and other microsoft products.

So your comment may be true for consumers but even in that space I wouldn't count Microsoft out just yet. They came out of nowhere in the game console space and are now one of the top, if not the top game console manufacturer... they have a lot of money and a lot of talented people.

Right now they are (finally) putting together a cohesive phone, tablet and cloud service for the consumer space with windows 8, windows phone appollo and skydrive. I don't know if they will succeed in breaking into this market but to paint them as somehow irrelevant is IMO very premature.


By Sazabi19 on 2/27/2012 4:17:28 PM , Rating: 2
Yes, a lot of the execs and higher ups around here (and judges) got iDevices thinking they were cool and easy to use only to realize they can't really do a whole lot on there for actual work. They can sync their emails from our exchange server but don't like using them for typing emails because it's not practical. We use a Windows environment (switching to Win 7 this year, we are almost done deving it) and all our machines are Dells. I don't like Dell on a personal line and never refer anyone to them, but for an enterprise they seem ok, we don't need high end machines most of us. For those that do we get higher grade machines. Dell does have a wide array of machines that we use, anything from a standard desktop to a ruggedized laptop for various Public Saftey devices. Any iDevice in our environment is going to get pulled within the next few months and not allowed back on to the system. We are however looking at Android based phones (instead of BB) and already have many in the environment as well as Android and MS based tablets for certain areas in the enterprise.


By Sazabi19 on 2/27/2012 4:12:11 PM , Rating: 2
Wow... I wonder if "Dr. Suess" was ever actually like this in real life. I think you should start writing down what goes on in your little world man and then have someone talented (or on LSD) draw some pictures to go with your books, make them rhyme, and then market the hell out of them. You'll either be loved or carried off in a trendy new white coat with cool sleeves, if you are lucky they may put a little apple stick on your back. I do however think your cell will still have yellow padding :( I guess it will match the iMac screens from a few months back :) You'll feel right at home.


By retrospooty on 2/27/2012 5:04:45 PM , Rating: 2
"So Microsoft has greater market influence but can't make more money - which is after all the basic reason businesses operate. Windows position reminds me of Symbian just a few years ago."

Its not like MS is hurting. Just becasue Apple is posting record profits doesnt hurt MS's lineup. Apple makes hardware. MS makes mostly software. And MS=Symbian is just silly. The whole world runs off MS software. Symbian never ran anything but peoples old phones.

As far as MS being obsoleted, tell me when there is applications for the following that will run in a secure enterprise client/server environment for the following areas.

Accounting
Procurement
Logistics
Reverse Logistics
Shop floor
Customer Service (tracking, case management etc)

Do you have apps that address all that and support them? Windows does. until then, you are dreaming.... and that is just a few standard things that all companies use. This doesn't even take into account the thousands of custom apps for specific disciplines.

Apple, Mac and/or iPhone isnt anywhere near MS's level of importance. Not by a longshot. You tell me when at the very least the factories that Make Mac's and iPhones stop using MS to run thier businesses. If anyone could do it, surely that would be a place to start. Good luck with your dream though. Its good to dream.


By TakinYourPoints on 2/27/2012 10:57:39 PM , Rating: 1
quote:
So Microsoft has greater market influence but can't make more money - which is after all the basic reason businesses operate.


It isn't like Microsoft is doing poorly. They have even higher profit margins than Apple and are still making billions off of Office and Windows (in that order). The main things holding back their net profit are sinking billions into projects that don't get off the ground, ie - $2 billion into Bing which still has yet to make a dent in Google's business. In any case, Office and Windows make so much money that they can still grow annual revenue with those losses.

They still manage to grow their business year over year, it is just that their growth isn't what it used to be since their ceiling as a software company is currently much lower than the ceiling is in mobile devices. Mobile is a product category that has a LONG way to go towards saturation, while desktops reached that point years ago.

I don't see it as a "versus" thing, Microsoft makes good applications. They are making loads of money off of Android licenses, not to mention selling their own iOS applications for iPhone and iPad. Office is set to release soon on iPad. They can easily clear over half a billion dollars in only the first few weeks if you figure that it comes out at $30 for the suite and it sold on 20 million iPads out of the existing ~60 million (and still rapidly growing). Microsoft is tapping into the huge iOS ecosystem and stands to make more net profit from it than even their own XBox 360 line, which is pretty impressive.

In any case, Microsoft's back end or desktop software isn't going away anytime soon, they're doing very well developing for iOS, and hopefully Windows Phone 7 will gain traction at some point (it certainly deserves to over Android). Microsoft will keep operating as a very profitable software company, nothing to mock IMHO.


By TakinYourPoints on 2/28/2012 12:22:21 AM , Rating: 1
When you talk about the diminishing of the desktop PC, I certainly hope you're including Macs in that analysis. Macs are used for work here in California, from the obvious content creation to things like software development and back-end work (bigger than most people here realize), as well as things like budgeting/scheduling. Mac/PC is a weird distinction given that they have nearly everything in common compared to their mobile computing counterparts.

The role of a full featured desktop OS may be diminishing as the simpler needs of the many can actually be fullfilled by things like smartphones and tablets, and things like media organization will continue to be moved to the cloud, but at the same time it will be quite a while until the functions of a desktop or laptop are replaced, at least for professionals.

The Symbian comparison is ridiculous btw.


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