Truth be told, things aren’t hopeless at Dell. Despite all the hand wringing over its deflated stock price, Dell’s (DELL) revenues and profits haven’t evaporated — they’re just not nearly where they should be considering the global boom in PC sales and overall high-tech spending. And Dell continues to be a cash machine, generating about $1 billion per quarter. A tech company could do worse — and many do. (See Advanced Micro Devices (AMD), Yahoo (YHOO), or Hewlett-Packard (HPQ) circa 2004.)
The problem for Dell is growth. Well over half of the company’s revenues come from PCs, yet its sales are sputtering while others surge; this year for the first time Hewlett-Packard shipped more desktop PCs than Dell, while HP’s laptop sales are outpacing Dell’s by more than 50 percent, according to researcher IDC.
Read the rest of Fortune's analysis of how to fix Dell.
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