A recent recorded speech by ‘Seeking Alpha’ hinted that Dell has been going through a rough phase due to the growing market share of Apple’s iPhone and iPad and other sophisticated smartphones which are swapping notebooks.
Officer Brian T. Gladden (Dell CFO) confessed during the company’s fiscal first-quarter earnings conference call that its results “were mixed.”
Gladden mentioned that the reason behind not meeting the expectations and falling Dell PC Market Share lies in the intense competition which Dell was facing from quite some time.
He added further that, “We fell short of our own expectations. There were some areas where our execution was not as expected, and there also are some market dynamics that created some headwinds for us.”
Contrary to the Wall Street’s expectations regarding Dell Market Share, the company witnessed a 4 % slump in revenue which was accounted for $14.7 billion and its notebook business plunged more than 10% over the quarter.
Michael S. Dell ( CEO) stated that, “In my own interactions with larger customers, we are seeing a delay and a pause in spending activity”
At the beginning of 2012, Dell announced that it is planning to step into tablet market around Fall this year which would run on Microsoft’s Windows 8 operating system but no one has any clue whether Dell started materializing its plan or no but Michael Dell assured that the company would have a “full complement of products” at launch, we just want to take some time in order to plan things well.
Revenues and operating margin for Dell's Consumer segment | Source: Dell
We recently saw in NPD quarterly mobile and tablet shipments quarterly reports that how Apple sustained its leading positionand it was iPad strong sales which helped Apple in achieving its aim.
An example of Dell clearly indicates one thing that if an organization fails to predict the future trends and don’t respond to the market dynamism on time then it may even reach to the verge of serious collapse. We hope that this quarterly earning report would serve as a wake up call for Dell as there is still a time to mend the ways, and Dell would seriously start thinking about how to face the challenges projected by growing tablet and smartphone and iPhone market share.