Dell's Last Hope? Company Turns to Windows 8 Amid Plunging Sales
August 22, 2012 3:00 PM
comment(s) - last by
Tablets are only part of the problem for Dell
While Michael Dell's offspring have drawn the ire of the executive's $2.7M USD family security detail, thanks to some
picked up by "Rich Kids of Instagram", Mr. Dell himself has face equally
struggling firm's financials and sales
I. Dell Faces Tough Questions, Says Windows 8 is the Answer to Everything
says it's "no longer a PC company"
is surely performing like a company who's out of touch with consumer PC sales.
In Q2 2012, Dell, Inc. (
) fell into roughly a tie for third place with Taiwan's Acer, Inc. (
) after fast-growing Lenovo Group, Ltd. (
) booted it from its perennial second-place spot behind Hewlett Packard Comp. (
). That sales fall resulted in a 22 percent plunge in consumer sales revenue and 8 percent overall revenue drop, despite a good quarter for the enterprise unit.
Michael Dell's company has stumbled into a tie for third place. [Image Source: Forbes]
But CFO and senior VP Brian Gladden is convinced Microsoft Corp.'s (
) Windows 8 will bail out his chief's struggling firm. He commented to investors in
You'll see new Windows 8 ultrabooks, all-in-one tablets and converged devices in the fourth quarter and headed into next year.
It's not clear what Dell means by "all-in-one" or "converged devices", but he was probably talking to hybrid tablets -- tablets with a keyboard (which may or may not be removable). Also unclear is exactly how Dell plans to differentiate itself from its rivals; Lenovo, HP, and Acer are
pushing Windows 8 product
Dell thinks Windows 8 will be sweet salvation. [Image Source: Storage Look]
II. Editorial Blasts Dell as "Done"
In an editorial
magazine staffer Farhad Manjoo writes "Stick a fork in it: Dell is done."
The opinion columnist comments that Dell is suffering an "existential threat", continuing:
However ugly your life gets, just try to put yourself in Michael Dell’s shoes. Imagine what that’s like. Picture yourself at the helm of a company that rakes in $60 billion in annual revenue — and then watch the money evaporating, floating away on a post-PC cloud. You built this company on the theory that computers were a forever-business, that the world would never fall out of love with the PC, and that you would be the guy to supply their fix.
The tragedy is that you were right: The world will never fall out of love with the PC. The PC is still riding high, the PC will be bigger than ever. What blindsided you is how the word “personal computer” would come to be redefined.
The overall premise of the column is that the rise of the tablet is killing Dell. Mr. Manjoo mocks Dell's sales chief's nebulous remarks on his company's
from earlier this year, in which he stated, "We have a roadmap for tablets that we haven’t announced yet."
While the criticism may be fair, it's equally important not to neglect that Dell is also failing in
PC sales -- a topic Mr. Manjoo surprisingly overlooks.
Tablets, like the ill-fated Dell Streak, are only part of the problem for Dell. [Image Source: Engadget]
Looking at Gartner, Inc.'s (
and the IDC Group
for Q2, one company that jumps out is ASUSTek Computer, Inc. (
) who stole the crown for fastest growth from Lenovo (who continues to grow pretty fast itself). ASUSTek -- which has a stable of
drool-worthy Windows 8 laptops, tablets, and hybrids
waiting in the wings -- grew at a 40 percent clip on a year-to-year basis. A few more quarters like that -- and a few more quarters like Dell's -- and the U.S. PC giant may find itself in fifth place in global sales.
That would be a stunning fall for Dell, which vied for the top spot in global sales for so long.
It's clear tablets are only the start of Dell's problem. From
shady sales tactics
floundering web presence
, the problems at Dell are numerous across the board. Dell may look to Windows 8 for salvation, but its failure to execute with current generation designs, inspires little faith that it will be able to execute in the next generation Windows era.
This article is over a month old, voting and posting comments is disabled
RE: Where was Dell...
8/22/2012 9:34:11 PM
Only have one computer at my job to do very basic accounting, still running Windows 3.11 on it, works great.
If it ain't broke, don't fix it. :)
RE: Where was Dell...
8/23/2012 2:49:19 PM
Got rid of our last W3.11 two years ago, I miss it so much. :(
"We can't expect users to use common sense. That would eliminate the need for all sorts of legislation, committees, oversight and lawyers." -- Christopher Jennings
Dell Tells Customers They've "Won" the Right to Purchase $317 Warranty
August 15, 2012, 5:35 PM
Dell Executive Takes Jab at iPad, Says it Isn't for Business
June 6, 2012, 11:00 AM
ASUS Shows Off Windows 8 Desktop+Tablet TAICHI, New Transformer Tablets
June 4, 2012, 12:10 PM
Acer Embraces Windows 8 with New Tablets, Ultrabooks, and All-in-Ones
June 3, 2012, 11:29 PM
Dell's Fiscal 2013 Earnings Disappoint
May 23, 2012, 10:00 AM
iLate: CEO Tim Cook Says Apple Watch Will Ship in April
January 28, 2015, 3:03 PM
Amazon's Fire Sale on Fire Phone Steps up in UK w/ 1-Day Sale @ $150 Unlocked
January 28, 2015, 11:53 AM
Apple Sees Record Profit of $18 Billion, Sells 74.5 Million iPhones in Q1 FY2015
January 27, 2015, 6:01 PM
Apple Might Miss High-End of Analyst Estimates, Microsoft Earnings Hint
January 27, 2015, 3:14 PM
Microsoft Smartphone Sales Up 28 Percent as Lumia Budget Models Gain Ground
January 27, 2015, 8:30 AM
Quick Note: Special 20th Anniversary PlayStation 4 Raises $128,000 for Charity
January 26, 2015, 4:14 PM
Most Popular Articles
Under the Hood: How DirectX 11.3 and 12 Will Supercharge Windows 10 Gaming
January 23, 2015, 12:34 PM
2016 Cadillac CTS-V Packs 640 hp Punch with 200 mph Reach
January 23, 2015, 3:25 PM
Google Fixes Homophobic "Bug" in its Translator
January 27, 2015, 2:31 PM
Microsoft Shows Off Latest Windows 10 Build, Preps it for Next Week Release
January 21, 2015, 2:57 PM
Microsoft to Close Nokia Store, May Lose Over a Hundred Thousand Apps
January 26, 2015, 11:15 AM
Latest Blog Posts
Sceptre Airs 27", 120 Hz. 1080p Monitor/HDTV w/ 5 ms Response Time for $220
Dec 3, 2014, 10:32 PM
Costco Gives Employees Thanksgiving Off; Wal-Mart Leads "Black Thursday" Charge
Oct 29, 2014, 9:57 PM
"Bear Selfies" Fad Could Turn Deadly, Warn Nevada Wildlife Officials
Oct 28, 2014, 12:00 PM
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
More Blog Posts
Copyright 2015 DailyTech LLC. -
Terms, Conditions & Privacy Information