HP’s decision to drop its personal computing business back in August was met with criticism from rival Dell, which mocked the company’s move to “divorce” itself from the PC business. It’s no surprise, then, that Dell has no intentions of pulling the same stunt.
In an interview with the Financial Times, Dell’s founder, Michael Dell, reassured the company’s fans that it there was no chance it would walk away from its PC business, and that Dell is nothing like HP:
“We are very distinct from some of our competitors,” Dell said, before describing the importance of hardware:
“We believe the devices and the hardware still matter as part of the complete, end-to-end solution.”
“Think about the scale economies in our business. As a company spins off its PC business, it goes from one of the top buyers in the world of disk drives and processors and memory chips to not being one of the top five.”
“…that raises the cost of making servers and storage products. Ultimately we believe that presents an enormous opportunity for us and you can be sure we are going to seize it.”
Those comments may lead you to believe that Dell’s PCs are more successful than those made by HP, but that’s not actually the case. Dell is the world’s second-largest vendor of PCs by units sold, with 12.9% of the market share. HP on the other hand enjoys 18.1% market share.
Bob O’Donnell, an analyst with IDC, says that HP’s recent move has made Dell’s future look pretty sweet:
“While there is uncertainty over the HP PC business, HP has handed Dell a big slice of business on a silver platter. Dell is perfectly placed to take advantage.”
There’s no need to worry, then, that you won’t be able to upgrade your Dell PC next year.
Are you pleased to hear that Dell won’t be so quick to give up on its PC business?