Dell Primed for PC-Market Resurgence?

Like many corporations, Dell has been feeling the weight of the economy, instigating cost cuts and reducing its workforce. But it is in a prime position for future success.

Jason Bovberg

May 26, 2009

1 Min Read
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Like many corporations, Dell has been feeling the weight of the economy, instigating cost cuts and reducing its workforce. But, although Dell remains cautious about corporate technology spending, it does plan to make acquisitions and aggressively pursue enterprise customers in an effort to win back market share in the United States. And it is in a prime position for future success.

Steve Schuckenbrock, president of Dell, said, "We're a growth company. (There's) no question we have our eye on the (market) share situation," Schuckenbrock said. "We also have a pretty good eye on margin. We lost share in large customers and we're not going to do that again."

According to IDC, HP overtook Dell as the PC market-share leader in the United States in the first quarter of 2009, boosted by strong demand for consumer notebooks. HP is also the world's largest PC maker, with Dell ranking second. "We have seen some share loss, particularly on lower-price bands, and I think you can expect us to address that," Schuckenbrock said.

Sanford Bernstein analyst Toni Sacconaghi made positive comments about the company. "I think Dell probably has the biggest upside of any company that I cover because it's depressed and very inexpensive. If they can effect a turnaround and the economy goes their way, they probably have as much upside or more than anyone I cover.

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