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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 CharonPDX on 2/27/2012 8:24:00 PM , Rating: 2
Companies don't care about "units", they care about revenue.

Porsche doesn't want to sell more cars than Hyundai, they want to make more revenue than Hyundai. If you can do that by selling fewer of a higher-profit-margin item, great. If you can do it by selling a lot more of a lower-profit-margin item, fine.

It doesn't matter if Apple sells fewer units of OS X than Microsoft sells of Windows. Apple makes significantly more profit off each OS X sale than Microsoft makes off each Windows sale - partly because OS X is (largely) tied to a high-profit hardware sale.


RE: Apple rakes in the profits . . .
By acer905 on 2/28/2012 12:41:34 PM , Rating: 2
Apple isn't alone in making record profits...

http://www.microsoft.com/presspass/press/2012/jan1...

http://www.microsoft.com/presspass/press/2011/oct1...

Profit margin doesn't matter that much if you are still raking in money, and hording cash like Apple does is somewhat pointless.

It really doesn't matter what your profit margin is if your consumers never pay full price for your products (Carrier subsidized iDevices). IF people actually had to buy an iPhone outright, Apple's high profit margin on it would kill them. But the stupid device is carrier subsidized to the same cost as any other "comparable" phone. HTC, Samsung, and the like simply can't convince the carriers to pay them as much because they aren't Apple


By TakinYourPoints on 2/28/2012 3:58:13 PM , Rating: 2
Wholesale price for iPhones is actually around what they are for other high end smartphones. The difference is that Apple's cost of materials and manufacturing is pushed lower due to economy of scale and producing devices in much higher numbers than everyone else. They also use their cash pile to further drive down component prices by paying for them years in advance. They've been doing this with flash memory for years, they invested hundreds of millions in machinery for producing their aluminum casing, and the most recent example is the $4 billion to LG to produce displays for the next few years, presumably for the upcoming high resolution iPads and possibly 2880x1800 Macbook Pros.

Their operations as well as knowledge that they won't sit on unsold inventory is a huge driver for their profit margins.


"We don't know how to make a $500 computer that's not a piece of junk." -- Apple CEO Steve Jobs

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