Dell will be the biggest supplier of Personal Computers (PCs) and other hardware devices to companies when Hewlett-Packard Co. (HP) exits from the PC business. HP ships about 64 million PCs with Microsoft Windows OS. It has been Dell’s biggest competitor and Dell would benefit a lot from the exit of HP. Dell remarked that this move by HP would largely validate a strategy that the company is already pursuing.
Dave Johnson, senior vice president of Dell’s corporate strategy, commented that the company does not plan to change any of its strategies as its PC business is doing well. He also said that HP’s decision to exit denotes the change that the technology industry is undergoing.
Michel Dell, CEO of Dell, recently stressed the need to focus on the corporate market where the company provides servers, software and advisory and consulting services. He said that a lot of people think that Dell is just a consumer PC provider because it sells many PCs to that segment. He remarked that the trend is changing and Dell is focusing more on catering to corporate clients now.
Around 55 percent of Dell’s $15.5 billion revenue for the last quarter was from PC sales, according to Rob Cihra, who is an analyst with Caris & Co. He also said that PC sales formed only 31 percent of HP’s revenue. Cihra also said that it may not be really possible for Dell to split its efforts between enterprise and consumers as well as the company would like to.
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