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
2/28/2012 11:30:09 AM
I didn't see anything in the announcement or this article to indicate that Dell is absolutely not going to resell PC's. They may, for instance, merely stop selling them to consumers at Best Buy/Walmart/online, and instead sell mobile and desktop workstations directly to business as part of an "enterprise IT solution".
My guess is that they're primarily wanting to get away from selling $300 laptops, etc.
"Spreading the rumors, it's very easy because the people who write about Apple want that story, and you can claim its credible because you spoke to someone at Apple." -- Investment guru Jim Cramer
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
12/9/2013 Daily Hardware Reviews
December 9, 2013, 5:34 PM
Samsung Unveils "Industry First" 1TB mSATA SSD
December 9, 2013, 10:21 AM
12/4/2013 Daily Hardware Reviews
December 4, 2013, 5:43 PM
12/2/2013 Daily Hardware Reviews
December 2, 2013, 3:41 PM
OCZ Goes Bankrupt, SSD Assets are Targeted by Toshiba
December 1, 2013, 9:58 PM
11/27/2013 Daily Hardware Reviews
November 27, 2013, 9:53 AM
Most Popular Articles
Hackers Nab 2 Million Login Credentials from Facebook, Gmail, Twitter
December 5, 2013, 1:00 PM
Experts: Masturbation Prevents Cancer, Diabetes, Insomnia, and Depression
December 6, 2013, 2:01 PM
Thieves Steal Truck with Cobalt-60 Onboard in Mexico, Will Die "Without a Doubt" from Exposure
December 5, 2013, 12:04 PM
Dow Chemical to NYC City Council: You Don't Even Know What Styrofoam is!
December 2, 2013, 8:30 PM
Man Arrested for Using 5 Cents Worth of Electricity to Charge Nissan Leaf at Middle School
December 4, 2013, 8:00 PM
Latest Blog Posts
Justice Leaks Details of Next HTC One Two Flagship Phone
Dec 5, 2013, 4:04 PM
Global Cyber Espionage Concerns Reveal Growing Cyber Armies
Nov 29, 2013, 11:04 AM
Is The Period Becoming an Expression of Anger?
Nov 26, 2013, 2:02 PM
NSA and Congress -- You Will Never Kill the Constitution, It's an Idea
Nov 10, 2013, 2:00 PM
AT&T Explores $100B+ USD Deal to Acquire Vodafone's European Operations
Nov 4, 2013, 7:34 AM
More Blog Posts
Copyright 2013 DailyTech LLC. -
Terms, Conditions & Privacy Information