Dell Cites Weak PC Market as Reason to Go Private
Dell wants to purchase its stock and go private again, and in a recent filing with the Securities and Exchange Commission the company outlined exactly why. In the filing, which Forbes.com first reported on, Dell points to decreasing revenues as a result of slow Windows 8 adoption, a reduction in enterprise Windows 7 upgrades and "the increasing substitution of smartphones and tablets for PCs."
Adding to the company's problems are the general unpredictability of the PC market and the shift away from higher-margin premium PCs to lower-margin PCs.
These issues aren't just an problem for Dell, though. The entire PC industry is in the same boat. Several major companies within the industry have already begun to pivot away from a dependence on the PC market as their major source of revenue.
Microsoft, which stands to realize significant losses as a result of the fall of the PC market, has released its own smartphone operating system, which is enjoying moderate success, and tablet hardware and software. Nvidia has already established itself as a major player in the Post-PC marketplace, as its Tegra processors are already used in many tablets and smartphones, not to mention automobiles from the likes of Audi.
It's not as though Dell hasn't made an attempt to penetrate the tablet and smartphone markets. You'll recall that the company previously offered its own line of Streak tablets and smartphones, though both of those have since been discontinued. Dell isn't the only PC-maker that has struggled to take its talents to the mobile market. HP suffered a similar setback with its webOS operating system and TouchPad tablet.
If Dell is to survive in the Post-PC landscape, it will have to learn from its previous missteps and put its best effort into moving toward the mobile market.