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Dell CEO: we're 'not really a PC company'

updated 05:00 pm EST, Mon February 27, 2012

Michael Dell backs away from core PC business

Dell's namesake, CEO Michael Dell, made a symbolic statement at an enterprise launch event that his company wasn't really a PC builder. He argued to a San Francisco audience including Forbes that his company, which started off making custom PCs, was "not really a PC company" and instead that it was an "end-to-end IT company that really understands the needs of its customers." As an illustration of this, the introductions were focused not just on servers of all sizes but 10Gbps Ethernet equipment and networked storage.

His statements were partly meant to claim an edge over HP, which Dell saw as catching up on enterprise-level features, but came not long after Apple chief Tim Cook had contended his company was the only one producing innovation in PCs. Dell and HP both objected to the assertion, although they made nothing but generic references to innovation.

For Dell, the statement partly deflects the problems it has had in its own PC business. Although faring better than HP, Acer, and others, it has been growing slowly or losing share where Apple and a handful of others like Lenovo have been growing much faster. Dell's habitual focus on low-end notebooks is believed to have hurt it as some customers considering an entry Inspiron opted for iPads instead.

Much of the company's shift in the past five years has been towards either less volatile services or towards higher-end PCs like the XPS 14z. Premium computers have been shown as less vulnerable to competition and economic crunches, such as when Apple kept growing even at the height of the world economic crisis in 2008 and 2009.



By Electronista Staff
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Comments

  1. Foe Hammer

    Fresh-Faced Recruit

    Joined: Feb 2005

    +22

    Michael Dell Says ...

    that Dell is "not really a PC company" and instead that it was an "end-to-end IT company that really understands the needs of its customers."

    How true! Michael knows all too well that Dell's customers need iPads, iPhones, MacBook Airs, MacBook Pros, and iMacs.

    Too bad he can't do anything about it.

  1. johncarync

    Fresh-Faced Recruit

    Joined: Oct 2002

    +20

    Dell's New Ad Slogan

    "Dude, You're getting....an end-to-end IT company that really understands the needs of its customers."

    Comment buried. Show
  1. Arne_Saknussemm

    Forum Regular

    Joined: Apr 2011

    -17

    Completely true!

    as Apple's iCloud server farm is not filled to the rim with unsold XServe systems from Apple; Not for the iCoud.

    Apple ONLY uses the best for it's clients,
    thus Dell PowerEdge servers it is!

    Running good old, and very reliable, Windows NT Advanced Server.

    So simple arithmetic show Dell (HP too) has made a h*** of a lot more money from serving the iCloud, and iDevices, than any number of PCs sold the same year.

  1. Geoduck

    Junior Member

    Joined: Jan 2010

    +8

    Yeah Right

    "end-to-end IT company that really understands the needs of its customers."
    Hey Mike, I'll give you a clue. Try focusing on our need for good quality products. While you're at it try good customer service. How about a good helpline, with staff that actually speaks English. How about systems that don't use custom parts so we can't even replace a hard drive on a server without spending a mint*.

    No. I do not recommend Dell to anyone for anything.



    *True story. I had a Dell server a few years back with 6 drive slots. We bought it with three and decided to fill the rest later. When that time came we found the slots had a plastic dummy part and to get the real drive tray we had to buy a "Drive Assembly" which included the drive for ~$800. We could have gotten the drive alone from NewEgg for about $200. I won't even go into how many Dell PCs we've thrown away because it only accepted a badly overpriced custom Dell Power Supplies or some such thing making it cheaper to buy new rather than repairing the old one.

  1. Jubeikiwagami

    Fresh-Faced Recruit

    Joined: Dec 2011

    +10

    Shovel, we need a shovel

    At least a dozen. Need a lot to shovel all that CR*P he's talking! LOL

  1. DudeMac

    Fresh-Faced Recruit

    Joined: Sep 2002

    +8

    Dell makes horrible PeeCees

    They're the modern day Packard Bell... they're just horrible!

  1. Paul Huang

    Mac Enthusiast

    Joined: Sep 1999

    +6

    font-size:13px

    We need a septic tanker.

  1. ferry_ip

    Fresh-Faced Recruit

    Joined: Feb 2012

    +5

    not surprise

    there are no real PC Company anymore, except FOXCONN

  1. PJL500

    Fresh-Faced Recruit

    Joined: Jun 2011

    +3

    Selling cabbages

    is what we do best now...

  1. TheGreatButcher

    Mac Enthusiast

    Joined: Jun 2000

    +6

    Full circle

    Time to shut Dell down and give the money back to investors.

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