Linked by Thom Holwerda on Tue 15th Jan 2013 01:24 UTC
Hardware, Embedded Systems "Dell, the personal-computer maker that lost almost a third of its value last year, is in buyout talks with private-equity firms, two people with knowledge of the matter said. The shares surged." So yeah, like I said - no wonder Microsoft has entered the hardware business. The PC OEM era is over.
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I don't get this
by justSomeGuy on Tue 15th Jan 2013 07:07 UTC
justSomeGuy
Member since:
2011-08-30

It's really not like me to defend Dell of all companies, but I really don't get this.

I remember seeing a graph a few weeks ago in some other story about this topic, but I have no idea where I saw it. It showed that Dell's market cap had fallen by about a third, but sales were relatively flat. They were down by low single digits year over year.

I know sales aren't indicative of profit, but for a pretty mature company like Dell, I'd think if their sales are steady they should be good. So what gives? Are they suddenly mismanaging money? Is previous mismanagement suddenly being discovered? Or is this speculation?

Even though they may be projected to ship fewer boxes in the future, Dell gets a good chunk of cash from organizational support contracts. And afaik, those aren't really in danger.

Can anyone explain? I'm basing off of experience working with Dell about 5 years ago. Have things changed that much?

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