Wednesday, November 22, 2006

Dell Results: PC is over

Dell quarterly results are good and have beated the analyst expectations. The stock is up 10%. I like it.

But I don't understand people are still not reading between the lines.

Desktop lost the market. US enterprise sales were lower. Sales increase was meager. PC is dead. If overseas growth is anchor point, then also overseas market wont be able to provide much needed growth.

PC in US is going away. So Dell will loose money in desktop side, which is 60% revenue. Its hard to believe about margin play talk that they admitted to happen intentionally. Dell should spin off or sell off its PC desktop business and concentrate on laptops and servers. Stock price will keep shooting upward. US sales will come more under pressure going forward.

If overseas PC growth will help PC desktop. I doubt it. There will be growth but less than historical standards seen in US or other developed economies. All emerging economies leapfrogged with Mobile and VoIP. Devices with these features are miniPC currently. More and more focus will be put on making them more like PC. PC will be lost and then fight is between form factor of laptops, cell phones or PDAs ( includes iPOD, Zune, PSP).

I hope PC companies realize it and adjust their strategies accordingly.

Sunday, November 12, 2006

Microsoft Vista/ Wii Disney

Two news came out last week, which state " Demise of PC"

Microsoft: We are done with Vista. ( Means: Our resources are now getting dedicated to Live). Windows on PC is done. Its going to be Live on Web. "Vista is done"

Disney: Disney has dedicated studio for Wii. This means Apple Mac Mini is not doing good. 3 years down the lane, nintendo will be bought by apple. "Wii/Disney/Apple"

I think I'll draw this conclusion. Web solution for PS3 online will be provided by google as Sony has an achilles heel there with Microsoft in lead with Xbox 360 live. Also, Sony codeveloped hardware with IBM and now IBM is selling google solutions through IBM services.

Microsoft Xbox 360 LIVE / Sony IBM Google PS3 GMAIL / Apple Disney Nintendo Wii iLife

What happens to PC? PC manufacturers are going to suffer more and more. Desktop PC is on decline.

Will write more.