Down but not out


  • Share via facebook
  • Tweet this
  • Bookmark and Share
Dell president Aongus Hegarty.

Dell president Aongus Hegarty.

Whichever way you slice it, the last 12 months have not been kind to PC giant Dell.

The vendor, famously founded by the eponymous Michael Dell in his Texas dorm room nearly 30 years ago, in 2013 laboured through what Forbes described as “the nastiest tech buyout ever”, while seeing its market share slump and its profits dwindle.

For Dell’s Europe, Middle East and Africa (EMEA) president, however, there is a light at the end of the tunnel. In an interview with Arabian Business, Aongus Hegarty explains that the company is midway through its transition from a PC builder to a provider of “end-to-end solutions” that encompasses mobile devices, security, software and data centre services. In theory, the move will not only create new, more lucrative revenue streams for Dell, but allow it to better compete with industry titans such as IBM, Hewlett-Packard and Oracle.

Hegarty is the first to admit that Dell’s evolution has been a challenging one and, to a degree, has been exacerbated by some of the recent trends that have swept the industry, such as the shift from desktop PCs to mobile devices and the push towards cloud computing.

“Our market, the technology industry in a broader sense, is constantly going through transformation and change,” he points out.

That is one way of putting it. According to the latest third-quarter figures from IT industry watcher International Data Corporation (IDC), the global PC market is shrinking at a startling clip, with overall shipments down by 7.6 percent to just 81.6m units.

To make matters worse, Dell is also losing in this space, with its market share trailing behind Hewlett-Packard and China’s Lenovo.

Despite the grim reading, Hegarty attempts to remain upbeat. “Yes, PCs in their current period are slowing down. That said, there’s hundreds of millions of PCs shipping ongoing on a quarterly basis and annually, so there’s still a significant market for PCs. It’s not as large as it was last year, and it’s declined on a year-on-year basis,” he says.

Industry analysts have offered various theories for what appears to be a terminal decline in the desktop PC market, ranging from a broader move towards mobile devices such as tablets and smartphones, to customers delaying investments due to the perceived unpopularity of Microsoft’s new operating software Windows 8.

Either way, the trend is a worrying one for Texas-based Dell, which, of its $14.5bn in quarterly revenue, derives fully $9bn from its end-user computing division, which produces its desktop and laptop computers.

Article continued on next page...

Related:
Companies
Join the Discussion

Disclaimer:The view expressed here by our readers are not necessarily shared by Arabian Business, its employees, sponsors or its advertisers.

Please post responsibly. Commenter Rules

  • No comments yet, be the first!

Enter the words above: Enter the numbers you hear:

All comments are subject to approval before appearing

Further reading

Features & Analysis
The politics of big data

The politics of big data

The UAE may be one of the fastest adopters of e-government initiatives...

Gateway to a new era

Gateway to a new era

Could Telr be the answer to start-ups’ prayers? The new three...

7 of the best accounting apps

7 of the best accounting apps

Tamara Pupic tracks down some of the best accounting apps on...

1
Most Discussed
  • 24
    World's most pierced man refused entry to the UAE

    Tolerance has its limits everywhere including Dubai and those who considered Dubai a lawless circus were held accountable...so thank you Dubai authorities... more

    Thursday, 21 August 2014 10:51 PM - Khalil
  • 23
    Baby NOT on board?

    Some of you cry babies need to get your own personal apartments on the plane ! You cry more then the babies I have seen in my travels. LOL more

    Thursday, 28 August 2014 9:10 AM - Jim
  • 21
    Israel “must be punished” over Gaza, says Dubai police chief

    This high moral ground that Mick is talking abt sound very familiar. May I remind Mick that the US & its British ally alone killed over 1 million innocent... more

    Thursday, 7 August 2014 4:12 PM - Mathew