After basically admitting defeat in the consumer PC market
and promising to focus on enterprise IT and “mobile services”
last year, Dell has found itself in the midst of a confusing
transition. It is caught between two markets that are
dramatically changing. Consumer PCs are dying. Enterprise IT
problems are being solved increasingly by “cloud-based” solutions
using generic or custom-built equipment. The future viability of
Dell’s hardware products, which already have razor-thin margins,
does not look great.
Put another way, Dell has no strengths in any market that’s growing. They’re a relic.
As a side note, I found this quote from Michael Dell interesting. The Journal asked him what had most surprised him since returning as Dell CEO four years ago. He replied:
I’d say [the] rapid rise of the tablet. I didn’t completely see
that coming. Tablets aren’t really new, in the sense that the
tablet PC idea’s been around for a while. Obviously, more recent
products have been much more successful.
“More recent products”. I’ve started to notice a trend where Apple competitors can’t bring themselves to mention the iPad by name. There are no other successful tablets. It’s just one: the iPad.
★ Tuesday, 21 February 2012