Second Place in a Losing Race

Maija Palmer:

Unlike HP, which last month announced plans to spin off its personal computer line and pull the plug on tablet computing, Mr Dell still believes in selling hardware, despite slowing growth and slim margins. “We are very distinct from some of our competitors,” says Mr Dell in a video interview on “We believe the devices and the hardware still matter as part of the complete, end-to-end solution.” The scale of its PC operations, he says, gives Dell an advantage over competitors in the smaller but more lucrative server market.

If HP stopped selling PCs and servers today, Dell would be first and second in those respective markets.