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It's quality not quantity for Dell

(China Daily)

09:38, October 31, 2011

BEIJING - Dell Inc's personal computer market share is declining worldwide but its top management doesn't seem worried.

China's Lenovo Group Ltd was named the world's No 2 personal computer maker by two research firms in mid-October, behind Hewlett-Packard Co and surpassing Dell in terms of third-quarter shipments.

Speaking at a recent media briefing, Dell Chief Executive Officer Michael Dell said his company may ship fewer units than Lenovo but will enjoy greater PC revenues and profits because it sells higher-end machines.

In addition, Dell said his company has grown well beyond its historical role as a maker of personal computers and a direct sales organization. Dell is becoming a one-stop shop with servers, storage and networking, as well as a services business, said the founder, clarifying Dell's transformation and new strategy at a Dell World symposium.

"If I look at our relationship with companies that make airlines, most of our business with them is not products anymore, but services," Dell said, adding that shift has taken approximately 15 years.

In contrast with HP, which in August said it was considering selling or spinning off its PC business, Dell reaffirmed that he still loves hardware but is seeking to explain to customers what else it offers.

The company said it will continue to innovate and invest in hardware, software, services and solutions to better serve customers. The end-user computing isn't just about the PC, workstation, tablet or mobile device; it is about making data accessible and secure regardless of device or location.

Dell has made 11 acquisitions over the past 12 months. It also announced it will invest another $1 billion this fiscal year to extend its global reach into data centers, mobile and cloud environments.

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