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.