Thursday, June 6, 2013

Why Dell is a Target

Competing bids to take Dell Computers private highlight the woes that have befallen the firm. David Gelles and Chris Nuttall paint a troubling picture in "Dell committee redoubles efforts to push Silver Lake deal." From a recent presentation regarding various offers:

  • PC market share  fell from 15% to 11% in the last three years.
  • Software and services market share is just 1%.
  • Revenues keep missing targets.
  • Profits have halved over the past 10 months.
  • The server business risks commoditisation.

As the article states:
The slides paint a depressing picture of the state of Dell’s business, sending a message that investors’ best option would be to take the money on offer.

1 comment:

  1. I think it’s all about quality as far I am concern, so if that’s there than things are always going to be on the rise, but if there is lacking in quality of things than the target will never be achieved. I do trading and here also it’s pretty much similar thing with my broker OctaFX been high at quality, so they are always getting more popularity and that allows me to be successful as well, so everything is relied upon quality of the work.