Wednesday, August 28, 2013
CEO Michael Dell, at the Dell Solutions Summit taking place in Beijing, China, stressed that Dell will continue PC business operations and related investments due to the large growth potential in emerging markets where PC penetration is as low as 40%.
Dell's gross margin was 19.6% in the second quarter, dropping only 1pp compared to the first quarter, but its profits dropped 72% compared to those of second-quarter 2012. Some market watcher believe Dell's profit drop was mainly due to weak PC demand and adjustments in strategy.
Dell pointed out that the company was the only vendor still enjoying market share gains in the past two quarters and the company will continue expanding its investments in PCs and tablets in the future.
The PC industry is declining, but since Dell's main focus is the enterprise market, which is seeing less impact compared to the consumer market, it has helped the company avoid a major drop.
Seeing the bring your own device (BYOD) trend gradually becoming popular in the enterprise market, and demand for 2-in-1 devices increasing, Dell will focus on releasing Windows-based devices including tablets in the future.
By: DocMemory
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