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...
8/23/2012 2:23:58 AM
Legacy is the whole reason Windows is a success. You can still run programs from 30 years ago if you so choose. If they did a total reboot, they'd probably lose 90% of their customers who'd have nothing to lose anymore switching to something else. No, legacy support is VERY important to Microsoft and its what they do. Until Windows 8, high customizability and easing users into changes was also the name of the game. Even up to Vista you could still use the old style start menu. Even after they changed the task bar to icons in 7, they let you go back to the text+icon based one. They've always had some consideration for those who liked doing things the same way in the previous version until Windows 8.
I don't mind so much that they took the start menu out. It's their attitude about it that really bothers me. As soon as a workaround was found to boot directly to the desktop by setting up a scheduled task on startup, they swooped in and blocked it. How does it harm them that a relatively few power users want to jump right to work? That attitude foretells the beginning of a new and more closed-box world for Microsoft users. Kind of reminds me of Luke, Han, Leia, and Chewy in the trash compactor on the death star. The walls are closing in.
"There's no chance that the iPhone is going to get any significant market share. No chance." -- Microsoft CEO Steve Ballmer
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
Google’s Project Ara Modular "LEGO" Smartphone Shown Booting Up on Video
October 29, 2014, 5:28 PM
After Touting Security, Privacy Controls, MCX/CurrentC Hack Exposes Customer Email Addresses
October 29, 2014, 3:08 PM
HP Reveals Sprout PC with Built in Projector, 20" Touch Sensitive Mat for Input
October 29, 2014, 1:13 PM
How Thin Can They Go? Oppo R5 is World’s Slimmest Smartphone
October 29, 2014, 8:33 AM
Samsung's Remote Wipe Could Let Hackers Hold Your Phone Ransom
October 28, 2014, 3:50 PM
Update: FTC Sues AT&T for Misleading Customers on “Unlimited” Data Plans
October 28, 2014, 1:41 PM
Most Popular Articles
Amid Theater Boycott Netflix Defiantly Plans New Movies, Plus 3 TV Shows for 2015
October 24, 2014, 7:30 PM
AT&T Defeats Purpose of New Apple SIM, Locks iPad Air 2 SIMs to Its Network
October 24, 2014, 2:17 PM
CVS, Rite Aid Kill Unofficial Apple Pay Support, Burn Google Wallet Users in the Process
October 25, 2014, 5:26 PM
1 Million Credit Card Activated on Apple Pay Within 72 Hours, Walmart CEO Hopes Visa "Suffers"
October 28, 2014, 8:17 AM
Microsoft's Figures Show Desktop Users Flocking to Windows 10 Preview
October 27, 2014, 11:04 AM
Latest Blog Posts
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
Space Terrorism is a Looming Threat For the United States
Apr 23, 2014, 7:47 PM
More Blog Posts
Copyright 2014 DailyTech LLC. -
Terms, Conditions & Privacy Information