Dell says financial woes caused by Windows 8

The “uncertain adoption” of Microsoft’s Windows 8 operating system and the slowdown in Windows 7 upgrades are partly responsible for Dell’s financial problems, according to a proxy statement filed by the company with the United States Security and Exchange Commission (SEC).

The statement presented to Dell shareholders the company’s case for accepting a $24.4 billion offer made by founder and CEO Michael Dell and private equity firm Silver lake Partners to buy the company and make it private. Microsoft Corp. is contributing $2 billion to the purchase.

“The difficult environment faced by the Company as a result of its underperformance relative to a number of its competitors (includes)…the uncertain adoption of the Windows 8 operating system,” the filling said. Dell also blamed “unexpected slowdowns” in Windows 7 upgrades in the enterprise space and the decision of many companies to extend their PC replacement cycle to save money.


Blackstone, Icahn submit counterbids for Dell
Samsung exec slams Windows 8

Dell also admitted that it sells a limited number of tablets and does not manufacture smart phones, both very popular devices in the market.

Dell, which ironically has a long history of partnership with Microsoft, is still the world’s third largest PC manufacturer, accounting for 10.6 per cent of the market share in the final quarter of 2012, according to analyst firm IDC.

Dells personal computer and associated products and services which the proxy called end-user computing (EUC) business, makes up 65 per cent of the company’s revenue.

Michael Dell and his co-investors favour a strategy that would focus more on moving to the more profitable enterprise services side of the business than EUC.

Read the whole story here

Would you recommend this article?


Thanks for taking the time to let us know what you think of this article!
We'd love to hear your opinion about this or any other story you read in our publication.

Jim Love, Chief Content Officer, IT World Canada

Featured Download

Featured Articles

ADaPT connects employers with highly skilled young workers

Help wanted. That’s what many tech companies across Canada are saying, and research shows...

Unlocking Transformation: IoT and Generative AI Powered by Cloud

Amidst economic fluctuations and disruptive forces, Canadian businesses are steering through uncharted waters. To...

Related Tech News

Tech Jobs

Our experienced team of journalists and bloggers bring you engaging in-depth interviews, videos and content targeted to IT professionals and line-of-business executives.

Tech Companies Hiring Right Now