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Dell: PC sales are 'keystone' to enterprise growth plans

Matthew Finnegan | Dec. 16, 2013
Dell commits to investing in declining market as part of long term strategy.

Dell has pledged to continue to invest in the PC market despite continued decline, viewing it as a "keystone" to enabling wider enterprise sales.

Recent statistics from analysts Gartner showed that worldwide PC shipments fell by 8.6 percent in the third quarter, though Dell was one of the vendors that managed to increase unit sales.

Speaking during a press conference at Dell World 2013 in Texas, CEO Michael Dell said that following the recent privatisation the company will proceed with plans to grow its share of the PC market.

"The PC continues to be important according to our customers, and is key to our strategy. Here is why: two out of three of the commercial customer relationships we have start with the PC before they move to the enterprise," Dell said.

"It is a great way for us to acquire new customers around the world that are just beginning their journey into IT."

CFO Brian Gladden pledged to continue investment in PC products as part of post-privatisation aims to spur long term sales increases.

"Despite a recent contraction in global PC demand we believe that we will continue to compete for growth," he said. "This sector is a keystone to our company as we think about expanding the customer footprint."

He added: "We are fully committed to invest in long term programmes that drive long term improvements, but also benefit our customers."

Dell also announced the launch of its Chromebook 11 at the event, a low-priced Android device aimed initially at use by students and staff in the education sector. This will add to Dell's portfolio of end user devices, including its range of notebooks, Windows and Android tablets and thin clients supported by its Wyse acquisition, citing insurance firm AIG as a major adopter of its VDI solution.

Dell said that sales of these end user hardware has risen as customers move "aggressively" embrace trends such as BYOD and mobility.

"There are great scale advantages that are coming from our participation in the client business," he said.

"During the week of Black Friday our sell-through grew 30 percent year over year. We are having enormous growth in tablets, but also notebooks and other form factors are growing rapidly and creating new opportunities."

 

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