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Home PC sales were a strong part of Dell's income. Smartphones and tablets (specifically the iPad) have killed the home PC market across the board. Dell still h
by junto 14y ago
Home PC sales were a strong part of Dell's income. Smartphones and tablets (specifically the iPad) have killed the home PC market across the board. Dell still has a strong server market and a strong B2B PC market (strong loyalty) through Dell Premier, but the home PC market is irreversible dead.
I used to work for Dell and was part of their dev team when e-commerce was the next big thing and sky-rocketed late 90's. I have always recommended Dell PCs to friends and family. I write this on a Dell Precision T5500, which was a beast (and still is) when I bought it 3 years ago. The build quality on their top of the range products is excellent.
However, if my parents came to me today with a recommendation for a new PC, I'd tell them to buy an iPad. They read (and rarely answer) their email, play the odd game of Mahjong, and use Skype to keep in contact with their children and grandchildren. They truly have no need for a PC anymore.
I can't count the number of times I have had to RDP into their virus ridden, broken Windows installation, because they clicked on something they shouldn't have and installed spyware or viruses.
We shouldn't forget that the "tablet market" used to be a joke. People what chortle loudly about "stupid tablet devices" and how nobody would ever buy one. Every tablet that came on the market was an abject failure. Then Apple came along with the iPad. Everyone thought it was bound to be another tablet dud. Everyone was wrong and Dell and Microsoft got caught with their pants down - one fellating the other. Dell still haven't really got off their knees to recover, but at least they can close their mouth now.
The iPad is a genius piece of kit. You really would struggle to break it. Even my parents couldn't get PC style spyware on it if they tried. It is that problem that Dell needs to crack. Microsoft have exactly the same issue and both companies know it.
Children these days have no need of a PC either, because they have smartphones. They keep in contact using Facebook chat or Whatsapp. When asked about email the other day, a teenager we know replied "oh, our generation don't use email. That's for oldies and besides you have to wait too long".
All of this is available to them via their phones - every second of the day. They are always online and always in contact with their friends. Having a PC means a fixed and non-movable connection to the internet, and they have to share it with their parents and siblings. This includes monitoring by parents, which with smartphones, is harder to do for most non-tech savvy parents.
Dell cut 75% of their product line and focus on a product that is better than the iPad. Microsoft bought Nokia for their mobile "experience". They should also consider Dell for their hardware experience. Their build-to-order process and technology is second to none, let's not forget that.