The dethroning of Dell as the world's largest computer
manufacturer follows a deliberate strategy shift by the company,
but it remains unclear whether the changes are for the
better.
Both The dethroning of Dell as the world's largest computer
manufacturer follows a deliberate strategy shift by the company,
but it remains unclear whether the changes are for the
better.
Both IDC and
Gartner
released market reports earlier this week showing that Dell lost
market share in the fourth quarter and was surpassed by HP as the
world's number one PC manufacturer.
Analysts suggested, however, that Dell's market share is dropping
simply because it has stopped pursuing a large share of the
market.
"Dell might not want to play in a low-end price area," Mikako
Kitagawa, principal analyst at Gartner Dataquest's Client Computing
Markets Group, told vnunet.com.
"Vendors really have to lower the price to gain the market, so it
is highly possible that Dell did not want to play in that
area."
David Daoud, manager of the Personal Computing and PC Tracker
programmes at IDC, explained that Dell may be considering shifting
its focus from entry-level machines to business computers and more
customisable high-end PCs.
The company's Alienware gaming machines, for
example, offer much higher profit margins.
"There is internal discussion within Dell as to whether it is going
for high-end products or for market share and low-end products,"
said Daoud.
The analyst also suggested that Dell's sales methods could have
something to do with its falling market share.
Dell has fewer opportunities to catch the attention of potential
buyers, according to Daoud, as it only markets directly to
customers.
"HP has a much more diverse channel strategy," he explained. "It
sells direct, through retailers, system integrators, you name it.
This enables HP to do better than any company that puts all its
eggs in one basket."