Dell bets on Windows 8 to sell tablets [Strategy] [Times of India]
(Times of India Via Acquire Media NewsEdge) TEXAS: While it awaits a revival in global demand for personal computers, Dell, the world's third-largest PC-maker, is banking on the Windows 8 touch-based computer operating system from Microsoft to sell its tablets.
With a slowdown in developed economies, global PC sales have been slipping along with a rise in the sale of tablet computers. Senior executives at Dell, however, are confident of a revival of PC sales given the low computer ownership in emerging markets.
"Nearly 85% of world's population live in economies where PC-penetration is less than 20%," said Stephen Felice, president and chief commercial officer of Dell who heads sales and market for the $63-b corporation.
Amidst falling sale of PCs, Dell's mainstay, the Round Rock, Texas-based corporation founded by Michael Dell in 1984, is seeking to transform itself from being a maker of computing hardware into one that also sells technology solutions to world's large enterprises. However, a robust PC business is necessary for Dell to support its push into services.
Dell is confident that the increasing affordability of computers will also contribute to the revival and growth in PC sales.
"The PC is now 27 times more affordable than 10 years ago and we see that trend continuing," said Jeffrey W Clarke, the VC and president for global operations.
Clarke acknowledged that Dell's challenge is to grow its PC business, which shrank in 2012. "I spend a fair amount of time thinking about how to change that trajectory."
Some analysts, however, think that tablets popularised by iPad, are already eating into PC sales, a trend they believe will only gather steam going ahead.
"Michael Dell is correct in that there is opportunity still in emerging markets. However there will be stiff competition for the wallet, from other consumption devices, such as tablets and smartphones," said Ray Wang, principal analyst and chief executive at Constellation Research.
The writer was in Austin, Texas, at the invitation of Dell.
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