Dell: Business Refocus, Emerging Markets to Keep Us Afloat
Dell is unfazed by projections that the global PC market will continue to shrink as consumers jump over to smartphones and tablet computers, according to company founder and chief executive Michael Dell.
Mr Dell acknowledged that difficult times are ahead for PC manufacturers as worldwide sales continue to plummet, which has been the trend in the past few years, while mobile computing devices consistently witness upswings in revenues.
The shift in general computing habits by consumers was exacerbated by the financial crises in the United States and Europe, leaving tech businesses to retrain their attention on emerging markets.
Indeed, Mr Dell's eyes were locked in Brazil, China, India, Russia and South Africa, where collectively the Dell brand has been reaping billions of dollars in annual sales.
In Africa and China alone, Dell registered some $6 billion in revenues as of its latest financial results, compensating for the slacks that the computer maker has been encountering in the developed economies.
"Emerging markets are a big deal for us ... and we are bullish on markets like China, India and Brazil," Mr Dell told Reuters on Wednesday.
The specific market refocus, he added, will be complemented by Dell's business approach, which emulates the pattern that were taken by other U.S.-based PC brands - selling more to enterprise customers and providing business software solutions.
IBM and Hewlett-Packard are now in the same business path and the Dell CEO is firmly convinced that the company will be served well in ramping up its efforts to deliver the appropriate answers to the hardware and software requirements of its corporate clients.
"We are very focused on enterprise solutions and PCs are an important part of that ... We are building a pretty substantial software business," Mr Dell said.
Dell issued his comments following industry reports that suggested the steady decline of U.S. PC manufacturers, which were projected to be overtaken by China's Lenovo before the year ends.
Lenovo will assume the top post amidst the rising sales numbers of tablets and smartphones that inevitably deducted revenues from traditional PC makers, in which Dell belongs.
All players in the PC market face definite slow downs, with industry trackers predicting mere three per cent growth for the sector for 2012 while smartphones and tablets were expected to at least double their shipments in the same period.
By 2016, traditional PCs are seen to remain in the picture but the dominant gizmos by that time would be mobile devices, further narrowing down the market pies that would be left available to firms like Dell, HP and Lenovo.