Microsoft May Buy Dell

by Paul Joseph on January 24, 2013 · 0 comments

I guess Steve Ballmer is quite serious about morphing Microsoft into the next Apple. While, I seriously doubt the ability of Gates’ Brainchild to ever match up to the crazy devotion that Jobs’ Baby commands, I do see the former copying the latter’s business style; a style that calls for the coming together of hardware + software. Buzz is that Microsoft is going to buy Dell. “Dell, who?” ask the tablet and smartphone addicted teen and young adult generation. Dell, kids, is (or was) the Big Daddy of laptops and PCs. They manufactured the best hardware in the business and offered top-notch after sales service. If you wanted sturdy, performance-oriented and decent looking laptops, you always bought Dell.  Moreover, if you didn’t want showy Sony and hyped HP, you bought down-to-earth Dell. For a hardware manufacturer this good, its excellence has proved to be the reason of its worries. Here is a look at those worries: The market is changing. With the increase in smartphones, tablets and even phablets , the need for PCs, laptops is reducing. Given how the latter devices have made day-to-day functioning easy – editing photos, updating social media accounts, writing blogs – the need for PCs is lowered. Of course, laptops are not completely obsolete, though they just might soon be. As the need for PCs is reducing, their demand is falling. We recently saw how despite the launch of Windows 8, the sale of PCs worldwide declined . Over the years, Dell was so driven by its core hardware offering (70% of its sales are still tied to PCs) that it overlooked the rise of other hardware devices – smartphones, tablets. Well, it did try and launched Dell Streak but this 5-inch smartphone turned out be ahead of its time and didn’t find many takers. Thereafter, Dell didn’t really actively try to produce or market better smartphones. As of today, there are around 14 Dell phones available in the market. Yes, 14! I didn’t know so many existed until I researched for this article. Dell did not invest in software! Dell has been hounded by competition from multiple quarters – HP, Apple, Google, Acer, Lenovo, IBM, Samsung, to name a few. It is for these reasons that Dell, which is still cash-rich, is seeing profits slump. Though the company has not uttered a word on possible acquisition, I guess they want to leave with dignity and while they are still in a good position. Given that Microsoft – a software giant – wants its hold in the hardware segment, the buy-out makes sense. But then again, if you read the worries listed above closely you will know that Microsoft has its work cut-out. To turn resources from laptop/PC manufacturing to smartphones/tablets will be a mammoth task. Is Microsoft up for it? Time will tell. The speculative figures of the buy-out are pegged at $2 – $3 billion with anything between $13-$14 being paid for each share. Do you think that this acquisition will be a good thing for Microsoft? Share your views with us. Image Courtesy |  pcmag Looking For A Social Media Agency?? – Contact WATConsult – India’s Leading Social Media Agency

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