Dell has predicted 80% of the dedicated PC market will be dominated by the top three hardware companies in the world. This includes Dell, Lenovo and Hewlett-Packard Co. Currently, Lenovo controls 20.3% of PC shipments, followed by HP with 18.5% and Dell attained a figure of 14.5%. During a round-table with journalists in Bengaluru, India, Michael Dell claimed:
“In the first half of this year, we outgrew the two in notebooks and we have grown now 10 quarters in a row,”
“Being a private company has certainly allowed us to focus our future more on 3 years, 5 years, 10 years out and get away from the short-term orientation that public companies often find themselves in,”
“We have been able to grow even though the (PC) market is shrinking and of course our business goes well beyond the device into data center, software, services and security,”
“I think there are maybe only one or two companies who make a profit in the smartphone business today and there are quite a few companies that lose substantial sums of money in the smartphone business,”
“So, no thank you! I do not want to be in the smartphone business.”
The theory revolves around consolidating each company’s current market position as the competition struggles to extend their foothold in a very difficult sector. PC sales are dwindling, and at an alarming rate. Therefore, you need a significant market share to remain near the top. Dell is suggesting other companies with a reduced focus on the PC market will eventually give up and leave space for Dell to enhance their profile.
Thank you Reuters for providing us with this information.