Dell, Windows 8, and the Future of the PC
Dell isn’t happy. As things go, the PC era, that is the Personal computer era may be over. As I’ve mentioned in another post, (Windows8 Prognosis for Sales), what consumers want of their PC, and businesses want, are different. The PC at the private consumer level is about communication, and entertainment. And guess what, that is what tablets, and laptops can provide. And as proof of this, just look at the tens of thousands of apps that are available for tablets. Where are they for the PC? Some are available…but the PC functions in an entirely different environment.
Which brings us back to Dell, one of the biggest PC makers in the world. Dell’s recent 1st quarter earnings reflect the view that things aren’t looking up for them.
Dell figures, that with slow growth, the PC industry will try to use some other means to induce customers to come back to the PC. Hence Windows 8.
With Windows 8, the format of the PC will change because Windows 8 will expand the touch screen basis of operations and this means that to fully appreciate what the apps and programs will do, you need a monitor larger than the tablet.
In a recent public meeting Dell officials gave their synopsis of the merit of Windows 8.
” We think that the touch screen products will certainly cost more. They are more in the price points and price bands that we tend to operate in. We will have the full complement of products around the time of Windows 8. Unlike other Windows transitions, you generally are going to need a new PC whether it is a tablet or notebook with touch or some derivative hybrid. The product refresh cycle associated with this release of Windows is likely to be very different from other releases, but it is hard to know exactly what it looks like.”
From this you can take several points. New Windows 8 based PC’s will cost more because of the touch technology. They also are in the process of creating new products to handle the touch technology, whether it is on video enhancement cards or monitors. Nevertheless, Dell like other manufacturers will have to adjust in order to compete with tablets and PC’s. But they still don’t have a good reason to give to users to stick to the PC and not move away. If they let the PC market get away, or blend into the tablet market, then they will have to make major adjustments. Their 1st quarter earnings may be just a preview.
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