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."
This article is over a month old, voting and posting comments is disabled
RE: Apple rakes in the profits . . .
2/28/2012 12:22:21 AM
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.
"A lot of people pay zero for the cellphone ... That's what it's worth." -- Apple Chief Operating Officer Timothy Cook
Report: Dell Kills All Netbooks
December 16, 2011, 12:35 PM
Quick Note: HP Opts Not to Chop Itself Up
October 27, 2011, 5:06 PM
Report: HP to Sell Off PC Unit
August 18, 2011, 4:55 PM
Tim Cook Touts Apple’s Product Portfolio, Performance in Letter to Employees
October 21, 2014, 8:05 AM
Lenovo Once Again The Top Global PC Maker, Apple Takes 50% of PC Profits
October 9, 2014, 7:46 AM
It’s Official: HP to Split Into Two Business Units
October 6, 2014, 8:14 AM
Quick Note: HP Plans to Split PC, Enterprise Units
October 5, 2014, 4:31 PM
Samsung Prepping 14-nm for Apple A9 Production, Handling 30 Percent of A8 Orders
October 2, 2014, 1:17 PM
Lenovo to Complete $2.1B Acquisition of IBM's x86 Server Operations on October 1
September 29, 2014, 3:19 PM
Most Popular Articles
Chinese Government Declares Digital War Against America's Top Tech Firms
October 20, 2014, 12:07 PM
Samsung Announces Galaxy S5 Plus with Snapdragon 805 Processor, LTE-A
October 22, 2014, 3:40 PM
Windows 8.1 + Android "Sell Mini PC" w/ Bay Trail Creates New PC Form Factor
October 20, 2014, 5:07 PM
Apple's iPad Air 2 Features Triple-core A8X Processor, 2GB of RAM
October 21, 2014, 8:32 PM
Apple Releases iOS 8.1; Adds Apple Pay Support, SMS Relay, Instant Hotspot
October 20, 2014, 1:00 PM
Latest Blog Posts
The Surface Mini That Was Never Released Gets "Hands On" Treatment
Sep 26, 2014, 8:22 AM
ISIS Imposes Ban on Teaching Evolution in Iraq
Sep 17, 2014, 5:22 PM
Space Terrorism is a Looming Threat For the United States
Apr 23, 2014, 7:47 PM
Facebook Aims to Provide Internet to "Every Person in the World" with Drones, Satellites
Apr 1, 2014, 10:20 AM
Retail Mobile Sites Experience Outages in Light of Simplexity's Bankruptcy
Mar 14, 2014, 8:48 AM
More Blog Posts
Copyright 2014 DailyTech LLC. -
Terms, Conditions & Privacy Information