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Handhelds Portables Hardware Technology

Now That It's Private, Dell Targets High-End PCs, Tablets 167

jfruh writes: If Dell has a reputation in the PC market, it's as the company that got low-end PCs to customers cheaply. But after the great drama of founder Michael Dell taking the company private, the company is following a new path, adding higher-quality (and more expensive) products like the Venue 8 7000, the thinnest tablet on the market today, to its lineup. One analyst notes that "Because they are no longer reporting to Wall Street, they can be more competitive."
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Now That It's Private, Dell Targets High-End PCs, Tablets

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  • by vux984 ( 928602 ) on Tuesday September 23, 2014 @06:37PM (#47979211)

    One analyst notes that "Because they are no longer reporting to Wall Street, they can be more competitive."

    The problem isn't Wall Street. Its the board members. And lots of companies thrive just fine as public companies because the board is taking the long view, selects a CEO with vision, and then lets him pursue it.

    While you have a toxic board that is only looking to milk the company, selects weak CEOs, and structures management compensation to incent short-term thinking then you've got a problem.

    I guess taking it private is one way to get rid of a toxic board, and good for Dell if they can reinvent themselves this way. But the problem isn't faceless "wall street".

    Instead, name and shame the Dell board members. They were the ones enforcing the short term outlook.

    • by dfsmith ( 960400 )
      Boards are typically appointed by the shareholders. A large proportion of shares (majority?) are held by "Wall Street" as part of mutual funds, etc.
      • by vux984 ( 928602 )

        Understood.

        Yet, for example, Apple is competitive. But Dell is not? The same major 'shareholders' mutual funds, etfs etc hold both companies. I agree that the shareholders elect boards, but each board has a unique momentum and culture despite all being more or less elected by the same people.

        • by dfsmith ( 960400 )

          Apple is somewhat special. See, for example [bloomberg.com]:

          Institutional ownership of Apple shares has declined as funds question the company’s ability to increase revenue long term, Morgan Stanley said in a report this week. Apple’s 30 largest shareholders own a record low 30 percent of shares outstanding, down from a peak of 40 percent in 2009, according to the report.

          • by tlhIngan ( 30335 )

            Apple is somewhat special. See, for example:

            Institutional ownership of Apple shares has declined as funds question the companyâ(TM)s ability to increase revenue long term, Morgan Stanley said in a report this week. Appleâ(TM)s 30 largest shareholders own a record low 30 percent of shares outstanding, down from a peak of 40 percent in 2009, according to the report.

            In other words, Apple has managed to get rid of investors who are in it for the money and instead get a bunch of investors who are inves

    • The problem is faceless Wall Street, which will sue if they don't feel the CEO is doing their duty to artificially buoy the stock price in the short term. It most certainly is Wall Street that created this culture of "what have you done for me lately?" that guides the decisions of management. It is Wall Street's fault that executive management expects to be paid a hefty amount of stock instead of simple monetary compensation so that the higher ups making the decisions are all rewarded by taking the short po

      • The problem is faceless Wall Street, which will sue if they don't feel the CEO is doing their duty to artificially buoy the stock price in the short term.

        They will, huh? When has that happened, exactly?

    • If you take your company to the vultures of Wall Street, you find that you have created an extra problem.
    • by MobyDisk ( 75490 )

      In short, the analyst should have said "Because they are no longer reporting to Wall Street, they can take more risk."

  • by PapayaSF ( 721268 ) on Tuesday September 23, 2014 @06:48PM (#47979293) Journal

    In 2009, Dell caught headlines with its premium Adamo slim laptop, which was considered a competitor to the MacBook Air at the time.

    Yes. "at the time." And remember the Dell competitor to the iPod? There are several problems for Dell here. 1) They are a maker of commodity hardware trying to move upmarket. But the fewer units they sell, the worse their economies of scale, so how to really make something special, without having to charge too much? Apple doesn't have that problem, in part because they sell 6-8 figures of even their high-end products. 2) Sure, Slashdot readers may be an exception, but most people who want Android and Windows machines rarely want expensive ones. So most of their target market will either want a cheaper Android tablet, or, if they want to spend more, they'll get an iPad.

    I think the best Dell can hope for is to be a niche player, a slightly bigger version of their subsidiary Alienware. 15 years ago, Dell and Microsoft both seemed unstoppable, but both have repeatedly stumbled since then. My, how the mighty have fallen.

  • Anybody that thinks Dell isn't concerned about profits is fooling themselves. Dell wants a good looking bottom line so that he can take the company public again. IPOs are where the money is.
    • by whoever57 ( 658626 ) on Tuesday September 23, 2014 @07:19PM (#47979443) Journal

      IPOs are where the money is.

      Stupid investors? I just don't understand why people invest in companies that have been taken private by a hedge fund, loaded up with debt and then IPOed. The story is all too common -- the company takes on massive debt, pays a huge dividend to its hedge-fund owners then sells itself on the stock markets. But why buy? It's not going to be a viable company with all that debt.

      • Because that isn't what happens.

        Hedge fund takes company that has too much debt across to many creditors private. Strikes a deal with the creditors that sees them take a huge haircut to get anything at all. Then they take a massive super sharp machete to the business carving every piece of non-today-essential flesh off. What you are left with is an extremely lean, profitable business which they then list again.

        Considerations, all, and I do mean ALL, non essential stuff has been removed. This means ther

        • Hedge fund takes company that has too much debt across to many creditors private. Strikes a deal with the creditors that sees them take a huge haircut to get anything at all. Then they take a massive super sharp machete to the business carving every piece of non-today-essential flesh off. What you are left with is an extremely lean, profitable business which they then list again.

          While that may happen some times, there are plenty of examples where the loading up of debt has happened either as a part of goi

  • Dude, you're getting a Dell.
  • Please let this mean the next developer edition XPS is going to be amazing. The current generation is pretty good already but where is my high dpi screen? I hope they are aiming at Apple's turf and I wish them luck.

  • > "Because they are no longer reporting to Wall Street, they can be more competitive."

    Paraphrasing popular song: "If you love your company, do not let it go"

  • Translation: (Score:4, Interesting)

    by SeaFox ( 739806 ) on Tuesday September 23, 2014 @07:56PM (#47979673)

    Dell thinks they can be Apple, but don't have the walled garden that makes it work.

    • Dell thinks they can be Apple, but don't have the walled garden that makes it work.

      Exactly. Unless they're going to start writing operating systems it's just not going to work.

    • by ihtoit ( 3393327 )

      except they build Apple gear and have done for years.

    • Dell thinks they can be Apple, but don't have the walled garden that makes it work.

      So, how does the "walled garden" make the MacBook Air such a popular laptop?

      • by SeaFox ( 739806 )

        The Walled Garden is OSX itself. Part of what makes Apple machines popular is how well they run compared to infamous versions of Windows like ME and Vista (pre SP1). Having such tight control of both the hardware and the software helps make this possible. They aren't having to tweak their own hardware or drivers to suit the latest change by a third-party (Microsoft).

        I was also talking about the iPod "halo effect". Apple's reputation as being a premium brand is also based on how "exclusive" the whole ecosyst

  • by hambone142 ( 2551854 ) on Tuesday September 23, 2014 @09:31PM (#47980111)
    I'd be willing to pay for a high quality PC or tablet that wasn't made in China by the lowest bidder. I'm frankly sick and tired of poor quality Chinese crap! I once suggested to the CEO of my company (named after two people) to do the same (ignored of course).. To make it in the Yoo Ess but it'd damned better be good quality. I'd pay the premium. Sort of like the "Harley Davidson" of computers with out the T-shirts. I am so tired of supporting CEOs that bet bonuses based on short term quarterly report results at the expense of the long term health of the company. I'd also like too support a company that is truly innovative vs. one that can't even design a product and instead, outsources the crappy design and manufacture. Give me a premium product and I'll pay a premium price. I realize not everyone wants this but dammit! Give us a choice!
  • Those of us who remember the first time Dell hit the market - as a mail-order company with little to no retail presence (except perhaps Sam's Club?) - remember they were the first one to really make a big run at it with all off-the-shelf parts. The earliest Dell PCs even had standard ATX motherboards in them that could be easily upgraded if the owner so desired. This was a huge improvement over the rest of the PCs on the market at the time, which were mostly Packard-Bell systems that were a nightmare to r
  • I want an X51 with Windows 7 Pro 64 Bit (they will not sell it with this OS). So I am holding out until Windows 9 Pro 64 Bit is available. I like Dell a lot and would buy an X51 today if they would offer the OS I want. Maybe now that they are private they will work with us?

  • If Dell has a reputation in the PC market, it's as the company that got low-end PCs to customers cheaply.

    Sure, that may their current reputation but back in the early 90s, Dell earned a reputation as a builder of high quality and well-specced computers. I recall working in the electronics department in a large store and running tests against the Packard Bells, ASTs, and Dells and the Dells always won every single benchmark by a large margin.

    In short, they were the kings of the 386/486 world. That is how they started. Perhaps they will return...

  • Hopefully this will result in more laptops with better displays... I'm boggled that manufacturers like Dell are still selling 15+" laptops with 1366x768 displays and have the gall to call them "beautiful" and "high-resolution" in their marketing. WTF.

    When I was looking for a new laptop a year and a half ago, I had to look very hard to find 15" laptops with decent ('full HD', 1920x1080) resolutions.

    Stop the madness!

  • Dell targets people with more money than sense.
    Makes sense.

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