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Dell “Exploring” Wearable Technology Market as PC Sales Drop

by Jacob Kleinman | July 5, 2013July 5, 2013 7:30 am PDT

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In the face of slumping desktop PC sales and a sluggish Windows 8 adoption rate, Dell is eyeing the wearable technology market, the struggling computer maker told The Guardian. In an interview this week, global vice president of personal computing Sam Burd revealed that Dell is “exploring ideas in that space.”

The company isn’t bowing out of the desktop business any time soon, but Dell admits it failed to capitalize on the rapid growth of the smartphone and tablet markets, and hopes to find a new revenue stream in wearable technology.

Dell’s PC revenue dropped by nine percent in the three month period leading up to May, while total income dropped 65 percent. The company also slipped from its spot as the world’s second biggest PC maker (behind HP) to third place behind Chinese computer maker Lenovo. CEO and founder Michael Dell plans to take the company private through a $24 billion buyout, which he hopes will make Dell more nimble and adaptable.

Wearable technology, though still largely theoretical, is quickly becoming a crowded market as companies rush to release new devices. Google Glass developer kits are already being tested by thousands of early adopters, but the hottest device may be the smartwatch. Kickstarted gadget Pebble has sold over 85,000 units and is now available form Best Buy, while Apple continues to tease the rumored iWatch, and Sony, Foxconn, Samsung and LG have all announced models as well.

The Guardian

Jacob Kleinman

Jacob Kleinman has been working as a journalist online and in print since he arrived at Wesleyan University in 2007. After graduating, he took a...

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