Posted on 22 August 2012 by Ninja Bear
Dell was once the most well-respected and recognized computer company on the planet. Those days appear to be over, at least for now. Dell reported an 18% loss in their profits over the last estimates. While other PC makers like HP and Lenovo are also struggling due to the emergence of the iPad, Dell?s struggles are particularly troubling for its owners and shareholders. Hard days are ahead for the company as they attempt everything they can to try to get their profits headed back in the right direction.
The release of Windows 8 in October might be able to help Dell and its fellow PC makers to make up some lost ground. They will be able to sell tablets that are very user-friendly, according to Microsoft executives. Microsoft 8 was designed to be compatible with touch screen devices similar to the iPad. The entire computer industry is trying to keep pace with Apple right now as their latest products have firmly cemented them as the head of the pack. Dell is struggling the most because their technology is seen as outdated and old.
Dell continually fails to produce good products in the smartphone market, where Lenovo is making headway in China. It?s estimated that Lenovo has sold 7 million units in China, and they are quickly approaching Dell?s revenue on a quarterly basis. Dell must act fast or they will become a company of the past. They are forecasting much lower sales than Wall Street has anticipated for them. People as a whole are generally no longer willing to invest in stationary desktops. Even laptop computer sales are hitting low numbers that they haven?t experienced in years.
People are ditching the big, bulky, immobile computers for tablets. It?s now Dell?s job to figure out how they can take their current compatibility with computers of the past and transfer it to computers of the present and future. If they can?t, we might just be seeing the end of Dell computers as we know them. iPads only cost about $350 when you buy them online. They are truly a good alternative to regular computers, since they cost more and can?t be transported everywhere.
The message that the market has sent to Dell is clear: get with the times or get out of the business. While Dell was once a decorated, celebrated computer company 10 years ago, its relationship with consumers has been shaky at best in recent years. Most people feel that Dell doesn?t do enough to keep up with the latest innovations that other companies are producing every day. Online web applications for mobile phones are making it easier than ever for people to play games and stay connected.
If Dell doesn?t figure out how to please the new generation of computer-buyers, they will be digging their own grave. People would still trust the Dell brand if they knew their products are more in line with the current trends.
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